Wheat Futures at 2012 Low on Rising Global Supply

Soft-red winter wheat futures reached an 18-month low on the outlook demand for US grain will be curtailed due to higher global inventory.  Wheat futures in Chicago finished the day at $6.1225 per bushel – down 0.075 cents for the day.

The USDA reported last week Northern Hemisphere global inventories before next year’s harvest will be almost 183M metric tons.  This is 4.3M tons more than forecasted in November.

Barb Levy, chief director for The Fox Group’s futures division in Chicago, had this to say regarding the current soybean futures situation,…demand for U.S. wheat has been light.  Dec 12th export inspections for U.S. wheat fell 11% from the previous week.” 

Wheat futures trend is down with no bottom in sight.  The current wheat futures move lower originated on the day of the crop report – a day that I traditionally stand aside.  In order for me to find a way into this move, I need a pull-back in wheat prices.

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