Inclement weather in top growing regions of the U.S. prompted wheat futures to climb in value on Friday as the grain also benefited from confidence that recent losses were overdone, according to Bloomberg.
Marking its first advance in eight trading sessions, the agricultural commodity has plunged about 8.7 percent since the first Tuesday of this month. The U.S. Plains are enduring dry weather these days. Friday might see Egypt acquire large amounts of grain; the North African nation is the globe’s biggest importer of what.
“There was a risk premium built into the wheat market, and we’ve pretty much taken that out,” risk management consultant Matt Ammermann with INTL FCStone Inc. in London told the media outlet on Friday. “To go much below where we are now, we’ll have to wait to see what crop conditions are more like in June.”
At 8:26 a.m. on Friday, wheat futures edged up 0.04 percent, a 0.0025-cent increase to $6.785 per bushel.
Producer.com reports wheat futures are likely to remain volatile in the short term but may demonstrate a more clear denouement.
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.