Wheat Futures Up on Eastern European Issues

In the spirit of price discovery based purely on supply vs. demand, there are signs wheat supplies in the Black Sea region are diminishing which, potentially, would create more demand for US wheat exportsWheat futures were higher today on this revelation before closing down near the bottom of the past month’s trading range.

Eastern European officials are publicly stating “grain exports from Russia are slowing,” and “Ukraine may decide to limit wheat exports temporarily at the end of November.”  In the meantime, wheat futures continue to flush out long positions since last weeks USDA Crop Production report.

Wheat (futures) is looking like it wants to move higher.  In my opinion, when the current sell off in soybeans slows down wheat (futures) will most likely move higher,” said Christian Moreno, a commodities broker at HighGround Trading group in Chicago, regarding the current wheat futures situation.

Wheat futures have been a problem child for trend followers these past four months.  Technically, the trend is still up for wheat futures in my work – but barely.  I will proceed with caution in these wheat markets, of course with tight stops.


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