Since Doomsday on June 26, 2011, the DJCI All Wheat TR, which is made up of both Chicago and Kansas Wheat, has lost 31.5%, though there have been summertime spikes throughout. Notice in the chart below, between June 30-Aug 31, 2011, there was a gain of 22.5%; from June 1-July 20, 2012, there was a gain of 48.7%; and in 2013, from Sept 5-Oct 23, a gain of 10.0%. On July 1, 2014, the index hit a new low from the record set on Jan 29, earlier in the year. Despite “ideal weather conditions” in some parts, this may be the low before the next summertime spike – which may be higher than ever as the underground water dries up.
This article was written by Jodie Gunzberg, global head of commodities, S&P Dow Jones Indices.
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