Wheat, as one of the most important food crops, is getting more and more attention. Trading wheat CFDs allows traders to participate in the agricultural markets easily and fast. The price of wheat is supposed to be going up because of the ever growing population. However, the COVID-19 pandemic has dragged the wheat demand down due to the closure of restaurants, cafés, and bakery shops. We can see from the one-day chat price that it had fluctuated most during last year. All things considered, the price of wheat has still managed to continue rising in the long run.
Now let’s focus on the short turn. The weather condition is worse than last week, with the U.S. Drought Monitor set to increase the nation’s area from abnormally dry to drought condition by 61.35%. On top of that, a severe hail storm hit central Kansas that has damaged the output extensively. This, combined with the scarce farmer activity surrounding new cash wheat sales, has created a slow market at the time of this article. Most of the crop has already been sold earlier this year when the price reached its peak, those with wheat yet to sell are likely to store as they await another price rally.
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