By Todd HultmanDTN Analyst
Back in early May 2017, “The Other Wheat Sneaks Higher,” was this column’s attempt to describe bullish changes happening in spring wheat prices. At the time, no one knew that drought would take prices from the low-$5s in early May to $7.78 a bushel by early July. In fact, moderate drought conditions had not even appeared yet on the U.S. Drought Monitor. (https://www.dtnpf.com/…)
One of the early bullish clues talked about was how commercials responded to lower prices in early April by going net-long. By May 26, which is slightly more than one year ago, DTN’s cash index of spring wheat prices amped up the bullish argument when it closed at a new three-month high. The drought was still not considered serious, but the market was clearly showing bullish concerns.
By the time extreme drought conditions began to show up in Montana and the Dakotas it was June 20, and prices were already at $6.15 a bushel.… Continue reading