Slow Harvest Boosts Wheat Prices
After starting lower, wheat continued to climb to close the day higher.
"Wheat futures traded 4 to 11 cents higher at midday, led by the hard red wheat contracts," says Allan Brugler of Brugler Marketing & Management, LLC. "The afternoon USDA Crop Progress Report showed spring wheat harvest at only 17% complete, vs. the five-year average of 33% for this date. The spring wheat condition rating lost two points in the good category, which ended up in the fair and poor categories."
At the close:
The Dec. corn futures settled 3/4 cent higher at $3.72 1/4.
Nov. soybean futures ended 5 cents lower at $10.52 3/4.
Sept. wheat futures closed 3 1/2 cents higher at $5.46.
"Rain in the forecast puts a cloud over commodity prices," says Scott Shellady, senior contributor to Marketing Talk on Agriculture.com and SVP at TJM Investments. "Improving weather patterns has the sellers out today."
"The best way to describe a market like that is the reason it is going up is that there is no good reason for it NOT to go up," explains Shellady. "It is that time of year with big(ish) moves on little volume as most use these waning weeks for holiday."