Great Plains Farmers Hoping for Rain Ahead of Wheat Sowing
Farmers in Kansas are going to be planting Winter Wheat into the driest ground in over 20 years. Like much of the Midwest, Kansas has been ravaged by droughts. The situation has gotten to the point that every single county in the state was declared a disaster area. The situation is a very difficult one for farmers and users alike.
Consumers could see further increases in prices given the fact that global supplies are tight going into the planting season. Over 70 % of the US Wheat crop is Winter Wheat. For large portions of the Midwest and Great Plains, a wet winter is going to be a must in order to have acceptable yields, as there is virtually no sub-moisture.
Turning to the chart, we see the December KC Wheat contract consolidating near the 900 level. Given the preceding uptrend, the bias can be interpreted as being to the upside. Prices have been centering around the 20-day moving average in recent trading sessions. The recent consolidation has brought the RSI indicator back into neutral territory.
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