Wednesday, March 12, 2008

Wheat: Up, Up and Away

Wheat is where the trading action is today, with wheat prices approaching lock limit up (green line) yet again. Record-low stocks of wheat in storage and firm global demand are driving wheat prices higher. Also, poor weather in some parts of the winter wheat-growing regions of the United States are pressuring prices. Amazing how different things are today from just a few months ago. Note also the daily chart below, which has been extremely volatile.