Wheat Futures Lower on Revised USDA Forecast

Wheat futures have responded to the USDA monthly crop report earlier this morning by dropping .10c to lower levels of support.  The gov’t says domestic wheat inventories before the next harvest will be more than they forecasted last month.

The USDA predicts wheat reserves will total 561M bushels by the end of next May – 10M bushels more than predicted last month.  Analysts were predicting “lesser” amounts, but the USDA will release their final production estimate at the end of this month.
           
The last trade date for the Sept 13 contracts (Chicago, KC, & Minneapolis) is this Friday,”  said Mason Ching, Automated Trading Manager, Global Futures Exchange & Trading Company in Encino, CA, regarding the current wheat futures situation.  Ching added,USDA has indicated that on Wednesday, Nigeria purchased 120,000M tons of US wheat for the current 2013/14 marketing year.”

Wheat futures trend is technically down, but more so trading sideways this past month.  This is the time of year wheat futures rallies into the end of the year, so I am approaching this market with caution.

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