Wheat futures advanced on Thursday as indications noted production in Ukraine and Russia will not be as high as projected due to heavy rain keeping farmers from sowing the seeds of winter crops, according to Bloomberg.
Significant rainfall is forecast through Friday for Eastern Ukraine, the Volga Valley of Russia and the Caucasus region, according to AccuWeather. Winter wheat planting in Ukraine could be 30 percent lower than the target set by the nation following a record amount of rainfall in September.
"Wheat continues to be the leader," economist Dennis Gartman stated in the daily Gartman Letter on Thursday, according to Bloomberg. Analysts and traders are "paying attention to the fact that Ukraine's winter wheat crop will be curtailed rather sharply because of undue amounts of rain that have made planting of that crop all but impossible."
At 9:46 a.m. on Thursday, wheat futures rose 0.95 percent, a 0.065-cent climb to $6.925 per bushel.
Reuters reports the grain was driving toward its top value in about 90 days on Thursday, also spurred higher by climbing export demand.
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.