Freeze Expected, May Affect Wheat Futures

Oklahoma seems to bearing the brunt of the extended winter weather.  Freezing temperatures expected tonight threaten that state’s wheat production which is already expected to be 45% less (85.5M bushels) than last year’s totals of nearly 155M bushels.

Wheat crops this year are taking a double-whammy in damage first by drought not seen since the 1930’s, and now freezing temperatures since the plants have sprouted from winter dormancy recently.  Hard-red winter varieties of wheat used to make “bread” is mostly grown in Oklahoma.
            
The crop tours are showing signs of a damaged (wheat) crop.  The short term direction is up.  If weather gets worse, (wheat futures) may go a lot higher,” said Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, regarding the current wheat futures situation.

Normally this time of year wheat futures are in down-trends into their harvest lows in early-mid summer.  This year there is a wheat futures counter-trend “up” in progress, but I’m skeptical of it.  I need more time for a clearer picture to unfold.

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