This article is brought to you by:
CONSENSUS
AG SERVICES
201 Innsdale Terrace, Clovis, New Mexico
505-769-3300(March 30, 2000) WHEAT: Wheat prices have traded all the way back down to support around the $2.82 level basis the July Kansas City wheat. This should catch prices for a minute or at least until the USDA Planting Intentions report is released on Friday morning. Much needed rain across most of the major wheat growing areas has been the primary blame for lower prices. Improving crop conditions and poor export has worked in combinations to keep the pressure on the wheat market. It's still too early to say the crop is made, but with improving conditions and the prospects for more rain over the coming week has chased many of the buyers away for a minute. Technically, prices should have dropped enough to compensate for improved conditions. Look for prices to begin to consolidate around this lower level until more information comes to pass. Wheat seems to be moving in other places around the world as world prices continue to be cheaper and the strong U.S. Dollar has discouraged other countries from buying U.S. wheat. Basically, the U.S. has become a storage facility for grain and until our prices are competitive with world grain prices or shortages are begin to show up in other areas, it may be difficult to hold contract lows which are already in place. One factor which may be positive is the fact that cash wheat prices are now cheaper than corn. This may generate some feeding interest in wheat which could use up existing supplies in a hurry.
SHORT-TERM TRENDS--Down.
LONG-TERM TRENDS--Down.
Bryon Fillpot
Hosted by:
CONSENSUS, INC. AND INVESTORS
CO-OP
1737 McGee
Kansas City, MO 64108
(816) 471-3862