Global Supply Outlook Sends Wheat Futures to Three-Month Low

Speculators have pushed wheat futures to more than three-month lows on the outlook tomorrow’s USDA Crop Production report will suggest world wheat supply outpacing demand.  Wheat futures are currently trading .11c lower than yesterday’s close, current at $6.01 per bushel.

Analysts are saying last month the USDA predicted less wheat stockpiles than there actually will be.  They are stating global wheat inventory may rise to the highest amount in three years with help of a stronger US dollar.

Laura Taylor, a senior commodities broker at RJO Futures in Chicago, had this to say regarding the current wheat futures situation,Wheat stocks for 2013/2014 in tomorrow’s USDA report are pegged at 588 million bushels compared to 583 million in May. The 2014/2015 stocks average estimate is up 10 million bushels from May’s estimate of 540 million.”  Taylor added,All more bearish for wheat prices.”

The trend for wheat futures is down with no bottom yet in sight.  With wheat futures extending their lows today before the report, I will look for some type of temporary rally to get short this market.

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