Wheat futures have climbed to a one week high today when it was learned freezing weather may damage winter wheat varieties in the Black Sea growing region and may have affected crops here in the US. The US is the world’s biggest exporter of wheat, yet it is only the US’s fourth biggest cash crop behind corn, soybeans, and “hay.”
A USDA report recently showed domestic winter-wheat crop conditions deteriorated in the week ending November 23rd, and snow cover in the Russian wheat growing region is forecasted to remain “limited” for the next couple of weeks – leaving the crops vulnerable to cold snaps.
Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, shared his fundamental view regarding the current wheat futures situation, “Wheat (futures) prices seem to be fluctuating based solely on exports and weather.” Medina added, “Supply is still plenty, but if the weather persists we can expect wheat futures to grind higher.”
The trend for wheat futures is still in a newly emerged up trend, with hard-red winter wheat turning up only today (in my study). I am looking for more upside with wheat futures into early next year.
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.