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.
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.
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Have a great year trading…
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Questions? Ask Frank Petricca today at 312-690-7763.