Wheat Futures to Consider Freezing Temps

Freezing temperatures have hit the southern Great Plains where winter-wheat crops are grown.  The risk of damage is certainly there with night temperatures expected to be as low as 14 degrees after freezing temperatures last night.

The cold temp’s are as west as the wheat growing region in Colorado stretching through Kansas, and as north to south from the Dakota’s to Texas.  The important thing to consider is that the wheat have not started heading – the stage when the grain emerges from the stem – and this should limit any damage.            

The wheat (futures) market is getting support from weather.  In my opinion, until conditions clear up and the market can decide the production losses,” said Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, regarding the current wheat futures situation.  Moreno adds, “Look for buyers in wheat (futures).”

The trend for wheat futures is at a crossroads.  Wheat futures made new lows early this month from an overall downtrend, and I am still favoring the downside (based on my own work).

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