Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Economist Gartman Recommends Buying Wheat as Corn a Sell

Don't Miss Out —
Follow us on:

May 31 (Bloomberg) -- Economist Dennis Gartman said he recommends buying wheat contracts in Kansas City and Chicago, and selling corn.

Wheat may rise relative to corn because of possible damage to wheat crops in Ukraine and Russia, after a cold snap in the past winter and recent dry weather, he wrote today in his daily Gartman Letter. Wheat futures touched an eight-month high on the Chicago Board of Trade on May 21 before retreating, leaving the most-active contract little changed this month. Kansas City Board of Trade wheat gained about 1.6 percent in May, while corn tumbled 12 percent on the outlook for rising supplies.

“In the past when the Ukraine and/or Russia had problems with their crops, we’ve seen wheat properly trading several dollars premium to corn,” Gartman wrote. “It should again, and so we’ll buy one unit of hard red winter wheat in Kansas City and one unit of soft red winter wheat in Chicago and sell an equal bushel sum of corn against it.”

Russia is expected to be the world’s fourth largest wheat exporter in the 2012-13 season, behind the U.S., Australia and Canada, according to the U.S. Department of Agriculture.

The agency estimated Russia’s wheat crop to be 56 million metric tons, down 0.4 percent from a year earlier on May 10. The USDA pegged the U.S. corn harvest, the world’s biggest, at a record 14.79 billion bushels.

To contact the reporter on this story: Whitney McFerron in London at wmcferron1@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.