WEEKLY WHEAT REVIEW: Wheat Fights to Reject Another Leg Down
Last week continued to slump.
Bryce Knorr
Published: Nov 22, 2008
The wheat market was the first of the ag complex to reach new all-time highs, and the first to collapse. Now, there are real fears it may be the last to rally.
Wheat continued its slump last week into the expiration of December options, making new lows Friday at all three exchanges. If history is any guide, the market could continue to break into the second week of December — that's the long-term trend in normal years.
Though that prospect is rather bleak, a few hopeful signs emerged. A few hundred out of the money $5 December calls were exercised and puts abandoned in Chicago Friday, which could indicate a better opening this week.
Export demand remains solid, though unspectacular. My forecast model continues to call for June 1 stocks to be lower than USDA's current forecast, with buyers still looking for higher quality wheat.
To read Bryce Knorr's complete weekly wheat review, click HERE.
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