Wheat Futures Fall on Global Economy Outlook

With concerns compiling regarding the Asian and European economies, wheat futures fell today on the outlook raw commodity demand will subside.  Wheat futures fell nearly 3% last week as well.

Raw materials and global equities dropped today while France & Germany couldn’t come to a conclusion for starting a joint oversight committee of the European banking sector.  Even Chinese companies do not share an optimistic view regarding growth and are reportedly letting go of employees.

Continuing global economic weakness remains a negative factor on the grain complex.  Further pressure hit the wheat (futures) market today as Russia’s Deputy Prime minister indicated that they will not be limiting grain exports, as was previously anticipated,” said Barb Levy, chief director of Futures & Options Xecution’s futures division in Chicago, regarding the current wheat futures situation.

The trend for wheat futures are technically up, but looking at a daily chart you will see they have literally traded sideways for over the last two months.  I remain bullish wheat futures and will continue to patiently await a low-risk trading opportunity.

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