Wheat futures are up for a second day in a row after falling .45 cents from their highs earlier this month as the United Kingdom is realizing record wheat yields, however smaller than “hoped.” Wheat futures are up .06 cents today currently trading near $4.97 per bushel at the Chicago Board of Trade.
Data from a UK farm ministry has their wheat yields now estimated at 8.8 tons per hectare – the highest on record – and up 2.8% from last year with no other issues such as disease or pests in this year’s harvest. Despite the record wheat harvest, experts there had forecasted the wheat production to be 16.68M tons, when in fact it comes in at 16.17M – still a record, but less than anticipated.
“Now comes the question what this record wheat harvest in the UK does to the (wheat futures) market,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her fundamental assessment of the wheat futures market. Levy adds, “It all comes down to export demand and right now there seems to be much wheat available on the global market.”
The trend for wheat futures is “mixed” in my work – CBT Wheat just rolling over to a down-trend yesterday, Kansas Wheat still at a crossroad. This has been one heck of a year for these two grain markets – as well as all of them – but wheat futures in general has been trading rather “sideways” all 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.