“You’re going to have multiple days of 90- to 100-degree temperatures with no [precipitation]on an already really, really stressed crop,” Joe Lardy, research manager at CHS Hedging, a commodities broker in St. Paul, Minnesota, told CNBC. “And there’s just not any good substitution for spring wheat, either.”
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Wheat futures were recently under selling pressure, but it may be only attributed to some taking the time-honored tradition of profit taking.
“We went too far, too fast,” Brian Grossman, a market strategist at Zaner Group, told Fox Business. “A pullback like this is a healthy sign of a market. It’s an indicator that we’re getting near to the end.”
Nevertheless, crops are still under duress as conditions deteriorate. According to the U.S. Department of Agriculture, the proportion of spring wheat rated good or excellent dipped to 37% from 40% last week while winter wheat fell to 48% good-or-excellent from 49% a week earlier.
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