Corn and wheat futures rose on Thursday, reflecting commodities brokers' concern that a heat wave across the Midwest will negatively impact the corn crop. Tomorrow, the U.S. Department of Agriculture is scheduled to release updated figures on its projected yield and production forecasts.
On the Chicago Board of Trade, wheat futures for September delivery gained 9.4 cents to trade at $4.70 per bushel, while December delivery futures rose 5 cents to $4.81 per bushel. Wheat futures for September delivery also gained, rising 26.6 cents to trade at $7.054 per bushel.
"Early corn yields are disappointing in central Iowa," Kent Jessen, the director of merchandising for Heartland Cooperative in Iowa, told Bloomberg News.
Across the globe, Russia once again cut its wheat harvest forecast, this time to 60 million metric tons. Last year's production was 97.1 million tons, and the world's third-largest producer of wheat had expected similar numbers for this year, until a devastating drought ruined crops.
"If after the New Year prices go up, the government will stamp this out through its intervention fund," Russian Deputy Agriculture Minister Sergei Korolyov said at a conference in Moscow. "the government won't allow prices to rise."
The Russian government has stockpiled around 25 million tons of wheat.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.