Wheat rallies on USDA report

The U.S. Department of Agriculture grain stocks  report, released earlier today, estimated wheat stocks at 2.10 billion bushels, down 2% from a year ago. Wheat recently has performed stronger than the rest of the grain complex and today has rallied sharply on the USDA report, up 50¢. The DEC ‘12 wheat contract bounced off a key support level at $8.60, and now may travel to its upper end of its recent range (see chart). After such a powerful rally going into the summer, wheat has traded in a small range for the past two months. If for some reason wheat breaks down, there is strong support around $8.20, however, wheat is likely to test $9.20, and potentially test the yearly high from July just above $9.50.

 

 

 

About the Author
Anthony Lazzara

Anthony Lazzara, CEO of Newport Beach, Calif., commodities investment firm Lido Isle Advisors, spent 10 years as a trader and floor broker at the Chicago Board of Trade and Chicago Mercantile Exchange. Anthony has significant experience in the energy, fixed income, and equity futures markets. After being a long-time independent futures trader, Anthony saw a tremendous opportunity to educate investors on how to invest in professional traders. Anthony is now focused on his duty as CEO of Lido Isle Advisors.

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