Waning Demand for Grain Hits Wheat Futures

Warning signs of waning demand for US grains sent wheat futures lower for the first time in over a week.  Wheat is the USA’s fourth biggest cash-crop, behind corn, soybeans, and “hay.”

Two factors weighing on wheat futures are the USDA‘s findings that since the beginning of June, overseas buyers have agreed to import only 90% of wheat than the same period last year and export sales of wheat have lagged behind 56% through last week (than the week prior).

Pressuring the market was today’s release of the weekly export sales, which were down 56 percent from the previous week. The biggest draw-down was shown in the export sales to Japan,” said Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, regarding the current wheat futures situation.

Wheat futures‘ trend is still technically DOWN in my work, but at a crossroads.  Looking at a daily chart for wheat futures you can’t help but see NO DIRECTION in this market for four months now.

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