Conjecture about increased demand for U.S.-grown wheat helped push the value of wheat futures toward their longest rally in nearly 11 months, according to Bloomberg.
The price of wheat had fallen 22 percent this year through Thrusday in response to production gaining 5.7 percent to reach 688.97 million tons of the grain, according to data from the U.S. Department of Agriculture. Nigeria is to receive 120,000 metric tons of winter wheat shipped by U.S. exporters by the end of May.
"Sales may start to increase," president Don Roose with U.S. Commodities in Iowa told the news service. "Rallies will be anchored by large world supplies."
At 2:15 p.m. on Friday, wheat futures gained 0.37 percent, a 2.5 cent lift to $6.75 per bushel.
The grain is driving toward its sixth consecutive bullish trading session, which would represent the longest winning streak since the end of this past January.
Shifting east, prices of wheat in Europe advanced to their highest value in 10 weeks amid worries about inclement weather in Latin American markets as the European market built on gains achieved by the U.S. market, according to Reuters.
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.
