A stronger start for the week morphed into a huge spike on Thursday, only to see it fail that same day and give up the whole day’s rally.
Wheat markets were able to make a stand this week, perked up by disappointing harvest reports in Europe and heavy rains on mature Black Sea fields.
The roller-coaster price action continued this week, down early and wiping out the gains from last week, then supported by a bullish supply/demand report on Thursday.
As for weather, it will get hot across the Midwest next week and it looks to stick around until about mid-July.
Grain producers saw prices plummet this week as tariffs were put on Chinese imports, with China promising to retaliate in kind.
Understandably, it’s hard to think that wheat could stage a rally from here.
Dry weather in Canada, hail in the U.S. Plains all push up wheat prices.
The reality check led to weakness on Friday, but the wheat markets were still strongly higher for the week.
After a weak start, wheat markets surged higher Tuesday and Wednesday followed by a reversal down on Thursday, only to find another round of buying on Friday.
Aside from the improved outlook for U.S. hard red winter wheat production, the northern Plains look like they may also get a break from Mother Nature.