Record Global Crop Outlook Sinks Wheat Futures

Wheat futures support fell out from beneath on the outlook global wheat production will be the most abundant in history for the fiscal year beginning next month.  As of yesterday’s close, wheat futures are down 10% for the year, but overall trending sideways.

Last week the USDA stated in a report global wheat harvested will amount to just over 701M metric tons – an all out record.  They also predicted the US will be the biggest wheat exporter next year.
            
When you look at some of the production estimates coming out of the major growing regions it’s hard to come to any other conclusion than we will likely see a large wheat crop this year,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current wheat futures situation.

Wheat futures technical trend has been up since late March, but clearly trending sideways since.  I am looking for wheat futures trend to technically resume down, and then get onboard the “short” train.

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