Barron's: Wheat Prices Headed Higher at Prospect of Extreme Weather

By SIMON CONSTABLE

Predictions calling for hot, dry weather early in 2020 followed by destructive flooding could cause “monumental crop failure” and easily propel wheat prices at least 40% higher within the next few weeks, analysts say. 

“There is a good possibility that the price could be over $6 at a minimum,” says Shawn Hackett, president of Boca Raton–based Hackett Financial Advisors. He says the rally could go far higher depending on the harshness of the weather. Active-month futures contracts for Kansas City Hard Red Winter, or KCHRW, wheat were recently fetching about $4.29 a bushel on the CME. Investors looking to profit from the move should buy July-dated futures contracts for KCHRW. Read more here.

Narek Avetisyan, CC BY-SA 4.0, via Wikimedia Commons