Weather Conditions Affecting Wheat Futures

As of yesterday’s closing, wheat futures have declined as much as 11% year-to-date with the USDA forecast of world wheat rising to record amounts starting in fiscal year June 1st, 2013.  However, wheat futures may be finding support as hot dry weather in the Southern Great Plains puts a damper on the winter-wheat crop, and too much precipitation in the Northern States further delays spring-wheat.

Only little rain is forecasted in parts of wheat growing regions in Colorado, Kansas, and Texas that have already been dry.  In the north, where the wheat plantings are 6% below the five-year average, they are expecting four inches of rain over the next five days.    

Mason Ching, Automated Trading Manager, Global Futures Exchange & Trading Company in Encino, CA, had this to say regarding the current wheat futures situation, “…in my opinion (wheat futures price fluctuates) on sentiment of poor weather and poor production potential here in the US.”

The trend for both wheat futures markets is technically down, and we are planning on catching the first pull-back in prices in this newly emerged trend.  I am expecting wheat futures to drop overall into the second week of June.

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