Wheat Futures to Absorb Production Setbacks

A United Nations economist believes there have been setbacks to wheat production in the Black Sea region enough for wheat to become the driving force of the grain markets next year.  Wheat prices had blasted-off in late June, through July, but have been trading absolutely sideways ever since.

Both corn & soybean markets have set records this year, but wheat futures have been the laggard trading more than 35% below its all-time highs of 2008.  This at a time when drought has eroded yields on two continents and Eastern Europe braces for its coldest winter in two decades.

Wheat continues to trade in a broad range, however, based on fundamentals may be undervalued.  It is difficult to be overly  bullish on wheat (futures) given that it is entering its dormancy period,” says Kevin Craney, a senior commodities broker for RJO Futures in Chicago, regarding the current wheat futures situation.  Craney adds, “However, if the drought in the plains continue there will be a cause for concern and this could give the (wheat futures) market bullish momentum.”

As mentioned prior, wheat futures have been trading in a stagnant sideways pattern for a time period longer than I’ve seen in my 19-years of trading.  When wheat futures breaks out of this pattern, and I am thinking to the long side, I plan on being on-board…

Share

Comments are closed.

Free Report
Receive Actual Trading Statements, & a Special Insider Report: 5 Key Trading Foundation Points

Futures Trading Report
 

Please note that it
takes a minimum
of $10,000 to effectively
trade these portfolios!
 
*First Name:
*Last Name:
*E-mail:
*Day Phone with
Area Code:

Categories

Follow Us on Twitter