Posted by: usset001 | July 23, 2013

Life-of-contract lows in Minneapolis September wheat futures

Yesterday the Minneapolis Sep’13 futures contracts closed at $7.4675/bu. and new life-of contract (LOC) lows. The market is another 2 cents lower this morning.

MPLS September 2013 futures contractThe Sep’13 contract first traded on May 4, 2012. Previous LOC lows were established in early June, 2012, when the contract closed at $7.48/bu. several days in a row. Then came the drought of 2012 and prices soared above $9.00 and set a LOC high of $9.6875 on September 14, 2012. The Sep’13 contract closed above the $9 mark for over four consecutive months, from early August to mid-December of last year.

A good technical analyst might tell you where to find the next support level. All I know is that crop conditions in the Northern Plains are pretty good, and there is no reason why the new crop spring wheat contract could not trend even lower in the next four weeks leading up to harvest.

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