Global shipments of wheat are set to drop to their lowest rate since 2006 this year as a result of a profound slump in exports of the grain from Australia, according to Bloomberg.
As the globe's second-biggest grower of the grain, Australia is set to see reductions of as much as 31 percent during the 12-month period leading to September 30, according to the median estimates of seven analysts polled by Bloomberg. The reduction comes as crops around the world endure reductions as a result of drought.
"The rain didn't come until late," farmer Maitland Davey who tills 3,700 acres of crops in the capital of Australia's biggest exporting state told the news source. "I hate ripping that ground up dry, dust just flying everywhere."
At 9:11 a.m. on Wednesday, wheat futures gained 0.79 percent, a 0.0675 lift to $8.635 per bushel.
Reuters reports the wheat produced by Australia, as the globe's second-largest exporter of the grain trailing only the U.S., is of reduced protein scales and less than normal, according to analysts and traders.
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.