Wheat Futures Lifted by Drought Threat

Wheat futures are up for a second trading session on the outlook of precipitation in the wheat growing heartland won’t provide the needed moisture in the ongoing drought.  Wheat futures are up .02 cents at quarter past noon Chicago time.

The forecast for Kansas & Oklahoma – the states which produce, and export, the most amount of winter wheat in the US and world (respectively) – are for only small amounts of rain.  Farmers have reported “as much as 40% of wheat plants have failed to emerge after seeding” which is said to threaten 25% of the future harvest because of the extremely dry weather.

Many farmers in the western and central section’s of Kansas and Oklahoma are concerned with crop conditions since many weather forecasters are reducing the amount of expected moisture in those regions,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current wheat futures situation.

Wheat futures have been trending decisively down with no bottom in sight.  Until I see “long-range” days to the upside, I still must continue to trade wheat futures to the downside.

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