Wheat Futures Extend Advance on Ukraine Unrest Outlook

Earlier today wheat futures had extended their gains since Tuesday on the outlook of tensions in the Ukraine not letting up and the possibility of less exports.  This possibility is generally bullish for wheat futures as potential buyers may come to US markets for wheat (and other grain).
 
The Ukraine is a competitor when it comes to grain exports – the six-largest wheat shipper in the world – and even amidst months of unrest in that region, so far grain exports have been uninterrupted and reportedly planting is ahead of schedule.

Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, had this to say regarding the current wheat futures situation,Wheat prices continue to remain strong after a bounce off their lows in January. The situation in Crimea will be watched closely as this could result in export disruptions.”  Craney adds,Any corrective (wheat futures) pullback should be well supported in the short-term.”

The trend for wheat futures is up at a time of year when seasonally they should be topping out.  When I saw wheat futures unable to hold it’s gains earlier this morning, I had to bail on the positions.

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