Wheat futures continue their $0.50 cent sell-off from the June 8th $5.24 high as the outlook of Australia’s wheat harvest rising further than expected to a four-year high hits the news. Wheat futures are currently “down” .035c per bushel today currently trading at $4.74 per ton at the Chicago Board of Trade.
The world’s top wheat exporter in the southern hemisphere is said to produce nearly 25.4M tons of wheat for the 2016-17 season – an upgrade of 880T tons from a previous forecast in March. If it comes to be, this will be the most Australia has produced since 2012 when drought plagued the continent.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental view of the wheat futures market by stating, “This recent wheat production estimation is a significant improvement of well over 1.0M tons over last year’s harvest.” Levy adds, “The pendulum has swung the other way in terms of favorable weather having only heard news of drought and dryer than normal weather in past few years regarding their wheat growing conditions.”
Wheat futures current trend is still technically “up.” However, if we have a couple more wheat futures trading sessions below the $4.86 price threshold, then we could be rolling over to down into the northern hemisphere’s harvest period.
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.
Recent Comments