Wheat futures reached highs not seen since early April in its renewed uptrend, and just before the monthly USDA Crop Production was released. Wheat futures did an about-face just prior to the report and closed down almost .20 cents for the day just below $5.13 per bushel at the Chicago Board of Trade.
The trade expected the USDA to raise their estimates for both corn and wheat supplies, and lower the outlook for soybeans in this current crop season. The released estimates for these markets were indeed confirmed, but the market sold off thereafter.
“It’s a typical case of ‘buy the rumor, sell the fact’ with this wheat market today,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, sharing his view regarding the fundamental assessment of the wheat futures market. Plotkin added, “The recent rains in the Central Plains and how it may affect the wheat market still cannot be overlooked.”
The trend for both hard & soft-red winter wheat is up with soft-red stronger of the two. In my view, the wheat market’s rallied early this year due to the heavy rains in the Central Plains – prime wheat growing country and the result of these down-pours still has yet to be seen…
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