Yesterday’s abrupt “about-face” in wheat futures has been halted as the wheat market finds support today and re-tests the highs. Wheat futures are up over .07 cents (as of this writing) in Chicago.
One of the two potential problems we’re facing with the wheat market is the political turmoil and possible sanctions imposed on Ukraine – the world’s sixth-largest exporter of wheat. The other potential problem is with our domestic winter wheat conditions as drought lingers in some parts of our Great Plains growing regions.
“The rebound in wheat (futures) prices has been attributed to two unrelated events,” stated Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current wheat futures situation.
The technical trend in wheat futures has rolled over to down in the past week, or so. We have profited on the long side of CBT Wheat futures this week, but am on the sidelines for a clearer picture to develop…
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