The recent up and down movement of grains continues, and that includes wheat futures, which were back up again today on concerns over whether wheat inventories will be able to meet demand.
Dry weather in the European Union, Russia and Kazakhstan has generated the most concern, although Russia sold Egypt wheat recently, causing some to think the U.S. isn't pricing wheat correctly, and is attempting to charge too much, even with the bad weather conditions.
Countering some of this is the good weather in the Midwest of the United States, which has become cooler and wetter, increasing the odds of a much better crop than if dry, hot conditions had continued.
All of this is speculation, and even if things are as bad as they are being passed off as, a growing number of countries have increased wheat production over the last several years, and it remains to be seen if there really is a supply problem, or the industry is creating that narrative in order to jack up prices.
After three straight days of falling prices, wheat rebounded to $5.8825 a bushel on the Chicago Board of Trade, gaining 11.25 cents, or 1.9 percent.
Wheat futures for September delivery on the Kansas City Board of Trade increased 12 cents to $6.015 a bushel, or 2 percent.
No comments:
Post a Comment