S Hemisphere Dry Weather Boosts Wheat Futures

Dry weather in Australia’s wheat growing region is once again adding to the global grain supply concerns, especially coming after the US summer’s drought which parched crops the worst in a half-century.  Wheat futures were up about .10c today on the Chicago Board of Trade.

The Australian gov’t is reporting that their wheat reserves have declined 14% from a year earlier (marked September 30th).  The weather in W Australia is expected to remain dry in the forthcoming week, increasing the risk to their winter-wheat crop.

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, stated today regarding the current wheat futures situation, “Wheat (futures) looks like the outside fundamentals can push it higher at any time. With the weather in Australia, and the constant threat of export bans from Russia, we could see higher (wheat futures) prices at any time.”

Wheat futures have been trading absolutely sideways for the past two-months.  I am going to look for lower-risk wheat futures trades in either direction.

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