Futures news, wheat. Since the beginning of the week wheat price has risen by 0.5$ per bushel, and it keeps rising. This is mostly connected by no rain in the USA and China, despite opposite predictions, as well as lasting dry weather in Russia. At this point there exists a threat of repeating the situation in May, when during 4 days prices have risen by 1$ per bushel due to threats of drought in Russia, Ukraine, and Kazakhstan.
Let us consider the fundamental factors influencing the price.
Long-term trend undoubtedly is bullish due to potentially deficit year, threat of drought in all wheat-producing countries except the EU.Production in 2012 is predicted to be record low for last 5 years.
According to Commodity Trading Department of , price may rise to record high when seasonal decline is over and current yield stops casting pressure on the market.
At this point price is kept by current yield in the USA, which has been gathered by 48%, whereas the average of 16% has been usually gathered by this time during last 5 years.
Recent report on crop condition has proved to be neutrally bearish, unlike the reports published during last six weeks, which predicted deterioration.
