Wheat futures traders have more data to take in as it is reported the wheat market in Brazil has practically come to a stop in some places due to the poor quality of their domestic crop. Wheat futures are up .10 cents today, currently trading at $4.79 per bushel at the Chicago Board of Trade.
Apparently the official crop bureau in Brazil put out a report which reportedly included language saying the top producing wheat state of Parana has “stopped buying wheat” and in the second top-producing state of Rio Grande do Sul buyers have been returning wheat already received claiming that the quality doesn’t meet their expectations.
“I understand there’s more to the story since the wheat buyers have returned supplies, and how long will this go on?,” said Laura Taylor, a senior market strategist at RJO Futures in Chicago, sharing her fundamental assessment of the wheat futures market. Taylor added, “The wheat shortfall in Brazil is prompting buyers to look toward Argentina to fulfill their ‘bread supply’… If this isn’t enough, will the US wheat (futures) markets be next in line?”
Wheat futures trend is down with a possible bottom formation in the making. Wheat futures has hit solid support recently, but there is equally solid resistance up ahead at the $5.00 per bushel level.
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.