Weather will be the major determinate of production and price. And we know how accurate meteorologists are. Still, we listen to them every day. Weather information is essential in the planning process.
The Kansas City December wheat futures contract price fell another 3 cents (a total of 7 cents). The CBT December corn futures price gained another eight cents. The corn price change did break the price downtrend, at least for the time being.
Unless Argentina’s and/or Australia’s wheat productions are significantly less than expected and/or U.S. 2014 winter wheat production expectations are well below average, wheat prices are not expected to increase more than another 50 to 60 cents per bushel.
Some commercial sources may provide (replace) much of USDA’s reported data. However, the general consensus is that commercial sources may not be as accurate, consistent, and unbiased as what USDA provides.
After the Kansas City (KC) December wheat contract price went above the $7.07 price resistance level, the contract price broke the $7.28 resistance in three days and challenged the $7.60 resistance in six days. KC December wheat prices increased from $7.05 to $7.57.