Wheat futures have dropped to prices not seen since 2010 on the outlook rising global production will only add to mounting wheat inventories and stockpiles. Wheat futures accelerated with the trend after today’s USDA Crop Production was released – confirming what traders already expected.
Wheat futures in Chicago have already dropped 15% before todays data on the view of record global production. The UN’s Food & Agriculture Organization’s prediction is about 3M metric tons more than the Int’l Grains Council’s world output view as prospects continue to improve for wheat crops in China, the European continent, and Russia.
“These grains just keep falling with excellent crop conditions and plenty of inventory and stockpiles. This mornings report confirms this,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his insight regarding the current wheat futures situation.
Wheat futures trend is down with no bottom yet in sight. I had to offset my short wheat futures positions before the report was released due to my policy of “not holding” positions through the report.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.