Producers should create a marketing plan, including LDP strategies, if one is not done already. The USDA wheat reports were neutral to slightly negative. Imports were reduced 5 mil bu. Food usage was reduced 5 mil bu. Wheat fundamentals have been negative for some time.
Technical analysts continue to watch futures market prices break into new low territory.
We are now in price territory not seen in 22 years. With the gravitational movement of wheat prices, most futures contracts are well below the U.S. average loan rate. Loan rate protection is available for year 2000 wheat producers. This suggests no immediate urgency in selling year 2000 crop. For farmers with 1999 crop, there are two views to consider.