RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Agricultural

Wheat Ends April Lower, and Looks to Continue

Posted 05/01/2019 11:29AM CT | Tyler Herrmann

The wheat market traded higher overnight after posting new contract lows for July in Chicago, Kansas City, and Minneapolis to start the week. The wheat market seen a lot of pressure lately finishing down for the month of April on all three contracts. Winter wheat conditions came in at 64% good/excellent which is up from the previous week and up from 33% this time last year. Even with soft red wheat conditions coming in lower in some states, winter wheat conditions are some of the best in the last 20 years. However, spring wheat planting progress came in at 13% complete vs a 10-year average of 33% with North Dakota, Minnesota, and South Dakota being closer to their low year than the 10-year average. Wheat tours in Kansas and Oklahoma are estimating yield at 46.3 bushels and 35.1 bushels respectively. Good weather in the U.S. and many of the world’s key export areas continue to pressure this already oversold market. Momentum studies are extremely oversold but need some bullish fundamental news to reverse the trend lower. Adverse weather in the northern Midwest could cause planting delays that would support spring wheat and a switch in feed use from corn to wheat could support winter wheat.

Wheat Jul ’19 Daily Chart

Wheat Jul '19 Daily Chart

Spring Wheat Jul ’19 Daily Chart

Spring Wheat Jul '19 Daily Chart

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Tyler Herrmann

Market Strategist
Tyler attended Kansas State University where he majored in Agricultural Economics. He started his career in the futures industry with an IB in North East Kansas where he worked with farmers and cattleman to hedge their risk in the market and protect profits with a variety of futures and options strategies. Most recently Tyler has joined RJO Futures as a market strategist.
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