Forecasts for inclement weather helped draw down the price of wheat futures on Thursday, according to Bloomberg.
The value of the grain slipped from its top price in four months amid threats posed by heavy rains and snowfall in the central and southern plains areas of the U.S. Demand for winter crops sowed last fall gained.
"The winter remains unusually mild in the U.S., which could have a positive effect on crop growth there, particularly since there has recently been sufficient rainfall in areas of cultivation," states a Thursday report authored by analyst Carsten Fritsch with Commerzbank in Frankfurt.
At 11:04 a.m. on Thursday, wheat futures dropped 0.63 percent, a 4.25 cent loss to $6.70 per bushel.
The globe's top exporter of the grain commodity is the U.S.
The Wall Street Journal reports the grain on Wednesday touched its top value since mid-late September amid worries about a slowdown of exports deriving from the Black Sea region. Winter weather also is likely to impact the price of the commodity across Europe as the majority of wheat planted there was sown in the fall and will be ready for harvesting this spring.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
