Wheat futures fell today to prices not seen since late September following the USDA’s report yesterday of spring wheat planting progress. Wheat futures later turned up for the day to close just over .03 higher at $4.765 per bushel at the Chicago Board of Trade.
The USDA is reporting rapid planting throughout the Midwest last week which was anticipated in yesterday’s .15c drop. They have 55% of the spring wheat crop planted as of Sunday, which is 36% higher then the preceding week with 42% of the wheat crop rated good to excellent condition.
Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, shared his fundamental analysis regarding the current wheat futures situation by stating, “The farmers are really taking advantage of the good weather while they have it.” Plotkin adds, “Looks like they are way ahead of schedule as only 17% of the wheat crop was planted this time last year, with the five-year average being 29% – so they’re looking good.”
Wheat futures trend is down with no bottom left in sight. In the next rally higher I think we should see wheat futures trend lower if/when September’s lows fail.
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.