Elements Rogers Intl Commodity Index (RJA)

[wow_happens28]

Weather Will Not Allow Wheat Price To Decrease

Wheat is 13.6% of RJA

http://seekingalpha.com/article/4033572-weather-will-allow-wheat-price-decrease?auth_param=1dl5n4:1c6f2ev:5bd469320228e49d5583fc7971922592&uprof=45&dr=1

Snippet:
Snow cover protects wheat when the temperature dips below 30 degrees Fahrenheit. Unfortunately, this temperature is forecasted in the United States for the next two weeks.

According to weather.com, in the period till January 8, air temperature in the mentioned states will drop t? 30 degrees Fahrenheit:

Considering that wheat crops are not protected by the snow cover, the low temperatures, in case they last long enough, will cause irreparable damage to the crops.

It is worth adding that the autumn period in the United States was characterized by dry weather in the key winter wheat regions, which worsened the condition of crops in the mentioned states. As a result, according to the latest USDA estimates, the aggregate share of the winter wheat crops in "good" and "excellent" condition is 52% in Kansas, 53% in Oklahoma and 47% in Colorado. At that, the similar average indicator for all states is 58%. Thus, the current condition of the winter wheat crops in the key states is relatively vulnerable to frost damage.

Considering that, according to the unofficial USDA evaluation, the wheat planted areas in the United States in 17/18 will reach the lowest level since 1919, the current weather risks mean increased likelihood of reducing the wheat harvest in the United States next year.

http://stockcharts.com/h-sc/ui?s=WEAT&p=D&yr=1&mn=0&dy=0&id=p95495003383