The Street - Wheat Supplies Tight, Driving Grain Futures Up

October 7, 2016 8:57AM CDT

"Feed usage is a big story this time of year, and with wheat trading below $4.00, livestock feeders look to switch to wheat," says Peter Mooses, a senior market strategist at R.J.O. Futures, where he trades futures and options and specializes in the grains markets. "The prices we have seen in Chicago Wheat were at ten-year lows and this area of consolidation on the technical charts hasn't given us any direction."

 

Mooses says the market has shown us that prices should trade between $3.85 and $4.15 with current conditions.

"Weekly crop progress reports show that wheat has been coming in nicely and weather conditions haven't been affecting production levels of the crop," he adds. "Weekly exports could provide some small market moves but typically the monthly and quarterly reports are the market movers. With the next quarterly data release scheduled for January, price targets can be set. In my estimate, we should end the year in the $4.35-$4.45 range, as bottoms have been established and wheat usage will go up."

 

To read the full article with Peter's comments, please visit www.thestreet.com

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