Wheat futures have rallied for two days in a row on the outlook rain in the central Great Plains area of Oklahoma to Kansas may “delay harvesting” and ultimately crop quality to lessen. The United States is the world’s biggest exporter of wheat and wheat futures is up only slightly in late session trading.
Rain in the forecast is said to be between one-half and two inches, but some areas are expecting as much as four inches! Wheat harvest delays are expected to be worst in Oklahoma and Southern Kansas – Kansas being the largest grower of winter wheat in the nation.
“The summer of 2014 appears to be proving the idea that timing is everything when it comes to weather patterns and the grain markets. A mere three weeks ago the rains that are currently falling in the wheat belt would be welcomed by the markets,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current wheat futures situation. Riordanadded, “At this late stage in development, however, the rain may very well delay harvest which could ultimately deteriorate the quality of the crop.”
Wheat futures trend is still clearly down with more possible seasonal decline ahead. Wheat futures are unable to hold the recent gains so I view this as an opportunity to short this market soon.
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.