Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities

Archives

Wheat Extends Short-Covering Rally, Are Gains Sustainable?

February 4, 2015 at 14:20 by Vladimir Vyun

Futures for wheat rose today, extending their yesterday’s gains. Other grains did not follow suit though, falling back. While the short-covering rally of wheat continues, bringing prices to the highest level in a week, analysts are skeptical about sustainability of the gains.

There is couple of reasons for prices to return to a bearish mode. The first of them is signs of lower demand for US grains. The second is the one that caused the previous decline, namely prospects for global glut that should reduce attractiveness of the commodity further.

March futures for delivery of wheat gained 0.49 percent to $5.1625 per bushel as of 14:17 GMT on CBoT today after hitting the session high of $5.2163 — the strongest price since January 27.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply

required
required  

Navigation

Menu