Wheat Continues to Surprise
Traders wonder if wheat's time is coming.
Bryce Knorr
Published: May 25, 2009
Wheat is one of those commodities that seems unable to get much respect from traders most of the time. Volume is far less than corn or soybeans, and the crop is grown pretty much everywhere around the world. People can eat only so much of it, helping support demand, but keeping rallies in check, too.
Still, wheat is also one of those commodities that produce nice, sustained rallies. And that has traders wondering if wheat's time is coming. Futures made new highs at all three exchanges last week, with potential to test January highs in Kansas City and Chicago.
Seasonally, it's hard for the winter wheat contracts to rally into harvest. Condition ratings actually improved last week nationwide, despite all the problems faced by the crop. That makes the rally suspect, though potential looks bullish long-term.
To read Bryce Knorr's complete weekly wheat review, click HERE.
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Tagged: wheat, soybeans, farmfutures, farmfutures.com, www.farmfutures
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