World Harvest May Drag on Wheat Futures

A major ag-market publication is predicting an unprecedented wheat harvest in the coming year.  This will be due to the larger wheat harvests in Europe and the Black Sea region’s lifting of the global stockpiles.

The Rome-based agriculture service predicts wheat production will climb to over 700M metric tons for the 2013-2014 time frame starting next month, from almost 660M tons this past year.  The report also suggested reduced trade as Asian & Europeans grow more wheat and rebuild their inventories.    

Kevin Riordan, director of research at Capital Trading Group in Chicago, had this to say regarding the current wheat futures situation, “Worldwide grain supplies are posed to increase significantly in 2013. Look for record levels of production in wheat, corn, and rice markets this year.”

Wheat futures trend may be technically down at this time, but has literally traded sideways for more than three months now.  If the reports are true, then we can see the wheat futures markets breaking hard in the not-so-distant future.

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