Global Supply Outlook Drops Wheat Futures

The USDA released its monthly crop production report and stated global wheat inventories will be bigger than forecasted last month.  Wheat futures fell as much as .19c following the report.

Wheat analysts expected only a nominal upward revision to world stockpile amounts, but as it turns out, the revision is more than 4M metric tons added to last months 178.23M forecast.  Wheat futures are down in price 25% from last years high as farmers increase their output at a time when global wheat demand is said to be slowing.            

“Global wheat supplies have increased beyond expectations, which continues to put pressure on (wheat) prices.  The extent of damage to the wheat crop in the United States due to weather is not fully known, and this may help support (wheat futures) prices long-term,” said Kevin Craney, a senior commodities broker at RJO Futures in Chicago, regarding the current wheat futures situation.

Wheat futures have been trading right near their 18-day moving average for almost a month now.  We are looking for short wheat futures signals now…


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