Wheat Futures Hit With Global-Supply Revision

There is now an outlook world wheat supplies will be ample with Australia reporting wheat crop expansion and India said to be considering increasing exports of their wheat supply.  Wheat futures are extending their losses on these revelations.

The Australian government’s forecaster claimed yesterday global wheat production may climb as high as 5% for the 2013-14 season, and harvesting up to a projected 13%.  The world’s second largest wheat grower – India – says they are considering approving more exports from their “reserves” as their Agricultural Minister forecasts a near record wheat harvest.

The wheat harvest figures in Australia are expected to come in 13 percent over last year,” said Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, regarding the current wheat futures situation. Levy added, “In the US winter storms have added moisture to the soil, alleviating concerns of persistent drought conditions.”

The trend, and seasonal tendency, for wheat futures continues to be down.  We are short CBT Wheat futures, but not Kansas City Wheat futures due to the market skipping over our sell-stop limit.  It’s disheartening at times, but a wheat futures market that needs curbs on fills.  We’ll try to get back in on a pull-back tomorrow.

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