This summer could be a scorcher, raising wheat prices in the US
Published Mar 16, 2023
Expectations of an unusually hot and dry summer, combined with the impact of the war in Ukraine, will probably send wheat prices surging by about 20% from current levels as early as April, experts say. “Drought will return and hurt spring wheat, not only in the U.S. but also in other places,” says Shawn Hackett, president of Hackett Financial Advisors in Boca Raton, Fla. That, in turn, could raise prices. Risk-tolerant traders should consider buying September-dated futures contracts for hard red spring wheat on the Minneapolis Grain Exchange. Alternatively, traders might consider buying the Teucrium wheat (ticker: WEAT) exchange-traded fund, which tracks a basket of wheat futures. It tracks a different type of wheat, but the two typically move together. Commodities & Futures Savvy investors may wish to wait a few weeks before executing any trades. Hackett sees the wheat market slumping into April and then forming a bottom from which prices will bounce into a ...