Wheat production challenges in Europe could spell opportunity for American farmers in the months ahead, says Jim Bower, Bower Trading.
“I actually thought wheat acted halfway decent [this past week] because it seemed kind of to ignore bearish news,” Bower tells “AgDay” host Clinton Griffiths on the Agribusiness Update for Monday, July 25, 2016. “We’re hearing reports out of Europe now that the EU particularly over a pretty broad area not only had some quality problems but now they’re talking about the yield wasn’t quite as good. So some of that European business now may be shifting to the United States, and the United States is relatively competitive in the world markets.”
As for defending prices, Bower cautions against making aggressive wheat sales at current price levels.
“From a bull spread standpoint, they’re very, very oversold,” Bower says, “and I think due for some type of correction down the road. Now it may take a little while, but I think the worst is over in wheat.”
Click the play button below to watch the complete "AgDay" interview with Bower.