Global premiums for high-protein wheat are expected to rise as unseasonal rains drive down quality in key producers, while Chicago futures are likely trade in a tight range in the next few months, a leading Singapore-based trader said on Wednesday.
Regular readers of the U.S. Wheat Associates (USW) Weekly Price Report have seen a month-long uptick in wheat futures prices. Each week, many headlines pointed to political instability in Ukraine as a key factor in the run-up. There is little doubt that the market was factoring in some concern over the political situation in a country that captured 6 percent of the world wheat market in 2013/14. But the primary fuel for a 15 percent increase in the Kansas City Board of Trade (KCBT) May hard red winter (HRW) wheat contract in just 13 trading days include real fears about droughts around the globe, potential freeze damage in the southern U.S. plains and position changes by the big index funds.
Wheat futures – weekly price report