Wheat futures are higher today (after the USDA crop production report) despite French farmers ramping up planting in the biggest area since 1936 – this after an all-time high bumper crop. Wheat futures ended the day up nearly .09 cents trading at $4.905 at the Chicago Board of Trade.
The French Agricultural Ministry reportedly stated that winter wheat sowing’s area had increased “in most French regions, and especially in the Loire Valley,” which is said to have increased by almost 5%. The increase of wheat plantings come at a time when the European Union was expecting a slight drop due to the popularity of the grain.
“If the French wheat forecast is correct, then another all-time bumper crop can be expected next year,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his fundamental assessment of the wheat futures market. Medina added, “Apparently the wheat used to make pasta is the favored variety.”
The trend for wheat futures is down, albeit sideways for the past four months with little direction. The time is right with wheat futures weakness for food processors to take a look at the bigger picture for marketing their products.
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