There is news out of Russia that wheat supplies for exports are less than normal prompting shipments of the grain to slow down. This revelation prompted wheat futures to advance further today to a three week high.
Just when Russian authorities lifted their grain export ban just six months ago, a research group there has realized current wheat stockpiles have not only dropped below last year’s levels, but some areas in the wheat exporting regions have declined as much as 50%. Is another grain market export ban in the works…?
Kevin Craney, a senior commodities broker with RJO Futures, stated today in an e-mail exchange regarding the wheat futures situation, “Wheat (futures) continues to see strong buying interest from both sides of the market. With the potential for an export ban out of Russia, and U.S. wheat priced competitively on the world market, the (wheat futures) market should remain well bid.”
Wheat futures remain at a crossroad – both CBT and Kansas City Wheat futures are hovering right around their moving averages, with CBT Wheat futures remaining in a technical up-trend, and Kansas Wheat futures in a technical down-trend. With a test of the lows in order, I will look for short selling signals in Kansas Wheat futures tomorrow.