As the globe's largest shipper of the grain, the U.S. is poised to continue being in receipt of sizable demand. Northwest Kansas and Southwest Nebraska endured below-zero temperatures this past weekend, according to Commodity Weather Group. The cold weather is projected to continue during the next 15 days.
"U.S. winter-wheat area was hit with ice and extremely cold temperatures over the weekend," states a Monday online market comment authored by president Paul Georgy with broker Allendale Inc., according to Bloomberg. "Traders are talking about potential winter kill, but we will not see the true effect until spring."
At 9:58 a.m. on Monday, wheat futures advanced 0.5 percent, a 0.0325-cent gain to $6.5425 per bushel.
Reuters reports Monday's gains for the agricultural commodity marked the first advance in four days. The grain had scraped its lowest value in about 90 days during the previous trading session as the calendar inches closer to the winter season.
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.