Black Sea grain market analyst, Andrey Sizov, is beginning to think the seasonal low in wheat prices is behind us. The Tech Guy thinks the $7.52 August 2nd low in September CBOT wheat will hold. Roger says better than a 50% chance it will be broken purely because corn farmers and corn elevators are desperate to get rid of wheat in their bins.
The problem this time of year, as always, every corn and/or bean farmer and every grain handler in the Corn Belt are all trying to get the wheat out of their bins to make room for corn and beans. That is why soft red winter wheat futures prices in August and to early September are usually lower than the peak harvest lows. All the flour mills are chocked-full of wheat by now and the basis goes to pot. If you grow wheat in the Corn Belt, set basis and deliver off the combine or store until December.