Wheat Futures Lower After Canadian Record Crop Estimates

Wheat futures reversed direction with gains after the Canadian government announced their farmers have harvested the most wheat – ever.  Wheat futures are currently trading down .04 cents today and have been as low as .08 cents lower.

The Canadian report revealed the current crop estimated to be 37.5M metric tons, up more than 10M from last year and 2.5M more than previously estimated in September.  Even 10 other analysts had predicted the harvest to be as much as 34M tons.

Weighing heavily on the wheat futures market in today’s trading are crop reports out of Canada and Australia. Canadian wheat production for the 2013-2014 crop year is expected to be 38% higher than the previous crop year. Australian production is expected at a 17% increase from the previous year,” says Barb Levy, chief director for The Fox Group’s futures division in Chicago, regarding the current wheat futures situation. 

Wheat futures are at a crossroad.  Although technically in a down-trend, if wheat futures were to manage to breakout above $6.75 per the March contract, that might change the outlook – but we’re working the short side of wheat futures even today.

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