Wheat Prices Continue Surge

Wheat for December delivery surged to another record high today closing limit up ($0.30 a bushel) to $8.05. Wheat prices have been in a major uptrend since May when it became apparent that stocks would be under severe pressure as drought continued in major production areas while global demand continues to be strong.

The price action in wheat this year is probably a taste of things to come as climate change makes itself felt around the world. With wheat stocks at 26 year low levels should climate change become increasingly severe we are likely to see wheat and other related feed grain commodities , like corn, move to ever higher levels.

Of course, market volatility will be high so it would be wise not to get too greedy and over leverage your trading positions on this bull move. It is a real shame to be right on market direction yet be knocked out of the trade on a temporary price correction.

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