Wheat futures have been taking a break from the sell-off of recent weeks partially because of the Russian surge of wheat exports – but that might all change soon. Wheat futures are up .04 cents today currently trading at $4.025 per bushel at the Chicago Board of Trade.
The consensus is in with Russia’s bumper wheat crop setting a record high, but the discovery of a worse quality than expected and tough international competition may make getting rid of their grain a challenge for them. They’re not the only country to realize poorer quality wheat, but Australia is experiencing this too putting higher grade wheat in demand.
“The quality of wheat is worse this year than a year ago,” said USDA-bureau official, sharing their fundamental assessment of the wheat futures market. The USDA added, “Although the same volumes of good quality wheat are likely, due to the bigger crop, it will be more difficult to compose batches of good wheat.”
The technical trend for wheat is “down” with no bottom yet in sight. The wheat futures market is a “sell the rallies” opportunity until a bottom is in.
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