December Wheat futures are extending their recent gains today, up already more than 12% this month with its biggest gain monthly gain since March. December Wheat futures are currently up .09 cents at $5.3975 per bushel.
An agriculture weather group reportedly wrote in a report today that lower temperatures in wheat growing regions in Russia are expected to stump the growth of up to two-thirds of the Russian crop – ultimately pushing the wheat crop into winter dormancy. The temperatures are working against further wheat growth along with 60% less than normal rainfall in most of the growing region this past month.
Laura Taylor, a senior commodities broker at RJO Futures in Chicago, shared her insight regarding the current wheat futures situation by stating today, “The wheat (futures) market is finding technical support of large fund short position with all contracts trading above the 50-day moving averages. Concerns about dry and cold conditions in Russia winter what regions and dry conditions in Australia are seen mildly supportive for the wheat’s.”
The trend for wheat futures has newly emerged as up. I am only interested in taking the “long” signals at this points and expect this trend to last into the end of the year, or beginning of the next.
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.