U.S. demand for the grain is forecast to climb as a consequence of Ukraine opting to minimize shipments of the grain later this month though the move is projected to be temporary. But Russian exports of grain also are moving at a slower pace.
"The sentiment in the world market remains bullish, buoyed by poor export supply prospects from the Black Sea region and deteriorating prospects for Southern Hemisphere origins – Australia and Argentina," states a Thursday report authored by analyst Abah Ofon with Standard Chartered, according to Bloomberg.
At 9:12 a.m. on Thursday, wheat futures increased 0.52 percent, a 0.045 cent increase to $8.685 per bushel.
Reuters reports the Black Sea region has finished sowing for winter wheat. Ukraine indicated the crop has high prospects but the outlook for crops in Russia is nebulous at this time though this year's harvest is projected to improve.
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.