Australian Exports May Boost Wheat Futures

Droughts around the world have withered crops to such a point we could see the lowest amount of global exports in the past 20-25 years.  Australia is now expecting their wheat shipments to be the smallest in six years.

Australia is the world’s second-largest supplier of wheat, but sales are expected to plummet by over 30% through the end of next September.  The 17M metric tons of wheat now expected is 1M less than the USDA had forecasted.

Kevin Riordan, director of research at Capital Trading Group in Chicago, stated today regarding the current wheat futures situation, “Wheat farmers in Australia have been saying that the rain didn’t arrive until it was too late. With the ground being extremely dry, some farmers are speculating their wheat harvest could be down by as much as 30% this year.”

Wheat futures continue to trade sideways for the past 3.5 months with no hint of direction in sight.  The fundamental news coming out is bullish for wheat futures and I will look to probe the long side.


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