Wheat may see a rally as harvest continues, according to experts
We are watching commodity markets closely as harvest continues. Experts say that there is a good chance of a rally for wheat.
Mike Zuzolo with Global Commodity Analytics calls it a “weather bull” in the wheat market and its spans across continents.
He shares his thoughts on how it is impacting both North and South America.
“You think about their wheat being in the middle of their crop season right now, you think about us in Kansas and Nebraska wanting to plant wheat but going very slow pace because of no rain and worries about it even sprouting, and then you throw on top of that the Russian risk premium question mark. And then, you throw on top of that the commitment of traders data saying that the funds, the managed money positions, are net short wheat and net long on a bunch of corn, and you have to wonder if they’re out of position at this point because we’re going into corn harvest now,” Zuzolo explains.
He says that he is getting reports from farmers in the Plains States, that they are dusting their winter wheat crops into the ground.