US wheat prices at their lowest while corn planting conditions improve in South America

2017/11/21 18:32:17

In the report below, Jack Scoville, a futures market analyst specializing in grains, softs, rice, oilseeds, and tropical products such as coffee and sugar, presents his comments and supporting charts covering almost all facets of international commodity trading.


 

 

 

 

By  Jack Scoville for Born2Invest, Nov 21, 2017

 

Wheat

 

US markets closed slightly lower in Chicago last week. The weekly charts show that winter wheat prices are at the lowest levels since harvest and might now be cheap enough for sideways to higher trends to develop. Minneapolis has started on an uptrend and the indications of good demand for higher protein wheats continue. Futures traders still hope for improving demand as Egypt was able to buy despite a court ruling there that prohibited Ergot in any wheat imports. The prices were not really strong, but at least the deal got done.

 

The market is noting dry conditions in western Kansas and other parts of the western Great Plains and the La Nina Winter weather forecast. The long-range forecast calls for warmer and drier than normal conditions in the South and Southwest, and it is possible that Winter Wheat will suffer under more stressful conditions. The market continues to be worried about Russia and its ability to control the world wheat offer and price.

 

World estimates, in general, remain large and US offers will need to be low to take business. It will be another small US crop as farmers continue to reduce planted area year after year in response to the low world and US prices, due mostly to strong competition mostly from Russia. Prices might not improve much for the coming year as Russia expects another big crop that could be big enough to offset lost production in places like the US and Canada and also Argentina and Australia.

 

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Link below to access all commodities and supporting charts:

https://born2invest.com/articles/wheat ... owest-corn-south-america/

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