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Frank Petricca

Frank Petricca is writer of “Petricca’s Pick” focusing on a Long Term approach for commodity traders that have an interest in Long term accumulation. Frank has worldwide recognition spurring innovation that points to communicating a different way to approach ones investment portfolio using commodity instruments. Contact Frank at 312-690-7763.

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Petricca’s Pick 10/18/2023

By On October 18, 2023 - 8:34 AM · In Market Commentaries, Petricca’s Pick

BUY MARCH CHICAGO WHEAT

 

Wheat futures are in fact within my lower 25% parameter where the Long-Term fundamentals are bullish.

 

Interestingly enough –

 

Wheat futures bottomed $5.71 ¼ last month hitting their lowest levels in almost three years, even though demand, exportable global wheat supplies are expected to approach historic high levels by mid-2024.

 

Monthly supply and demand estimates from the USDA also suggest wheat stocks-to-usage among major exporting countries will fall to 13.5% in 2023/24 from 15.1% in 2022-23.

 

A 13.5% STOCKS-TO-USE IS THE SECOND LOWEST ON RECORD BEHIND 13.1% IN 2007/08, ANOTHER EXTREMELY VOLATILE TIME WHEN WHEAT PRICES TRADED $13.34 IN FEBRUARY OF 2008.

 

Subscribers should also recognize that while wheat acreage will be up 9% this year these numbers are still historically low, under 50 million acres.

 

 

 

We should also know that –

 

  • Russia-Ukraine war could provoke a major food crisis. Ukraine continues to bomb Russian ships to allow for safe passage of wheat through the Black Sea.
  • It’s been extremely dry in Australia and Argentina with production losses expected in both countries.
  • India’s monsoon rains hit a five-year low due to El Nino. Rainfall over the country during June to September was 94% of its long period average, the lowest since 2018. India is the world’s second biggest producer of wheat which will mean less wheat exports from India.

 

Today March wheat is trading $6.04 where Long-Term accumulation is recommended.

 

Please call for entry levels and Money Management Strategies that are so important when one makes an investment of this nature. 312-690-7763.

 

It is my opinion Money Management Strategies are as important as commodity positions you initiate.

 

Please sign up for Petricca’s Pick updates located at the bottom of this post for additional information regarding my Long term Strategies in general. Would love to hear from you.

 

In the meantime –

 

Have a great year trading…

 

Questions? Comments? Please call.

 

Best wishes

 

Frank.

Questions? Ask Frank Petricca today at 312-690-7763.        
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