Wheat Futures Sink on Increased Supply Outlook

The USDA is backtracking it’s wheat supply estimates it provided last month with the outlook that it is higher than what was previously estimated.  Wheat futures have sunk to a three week low on this speculation of higher stockpiles.

A Bloomberg News survey of 29 analysts believes wheat inventories are 1M bushels more than the USDA estimated last month.  On Friday, the USDA will update its wheat supply & demand forecasts.

Wheat (futures) continues its broader trend down. Weather and fundamental supply will be key drivers for the wheat market as we move forward,” said Kevin Craney, a senior commodities broker for RJO Futures in Chicago, regarding the current wheat futures situation.

Wheat futures uptrend appears to be at a crossroads.  I am still bullish wheat futures, but if last month’s low is breached then I would have to sway toward the bearish seasonal tendency.

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