Crop conditions continue to deteriorate for wheat. The ratings are well below the 5 year average and this could lead to poor yields in the spring at harvest.
The soil is very dry for the winter wheat crop and it is soon to go into dormancy for winter. Other parts of the world are also experiencing problems. Russia, Argentina and Australia are expected to have smaller crops this season due to weather problems.
Wheat has been trading between 8.50 and 9.50 for the last six months. If the crop problems worsen, wheat could break out of this range or at least hover toward the high end of it.