WEEKLY WHEAT REVIEW: Seasonal Trends Could Help Wheat Avoid Abyss
Wheat is focusing on fundamentals again.
Bryce Knorr
Published: Jan 19, 2009
The outlook for wheat is fast is becoming a tale of two markets, old crop and new. Lackluster demand and fierce competition on world markets remain an anchor around the old. Falling acreage and threatening weather hold out at least hope for new.
The fact that wheat is focused on fundamentals again is good news of a sort. It means that seasonal trends are trying to prevail, and those suggest prices may not completely fall off a cliff. Longer, term, however, new crop has still confirmed a move to a more bullish pattern. Unless it does, wheat is still at risk of sharply lower prices into harvest this summer.
Even with the 4-million acre drop in winter wheat seedings announced by USDA, supplies would be adequate as long as yields don't break too much. Weather, of course, remains the big question mark as spring slowly approaches, at least on the calendar, and there's plenty to chew on.
To read Bryce Knorr's complete weekly wheat review, click HERE.
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