Wheat futures ready for a freefall

An ag economist says wheat futures could freefall at any time.

The University of Missouri’s Ben Brown said wheat is trading above market fundamentals, receiving bullish signals from a short squeeze which he compares to Game Stop’s stock in 2020.

“We saw shares of GameStop go from like $20 a share to over $450 a share within a really short period of time,” he said. “And we’re seeing that same situation play out in the wheat market.”

Brown said traders sold wheat contracts expecting the market to go lower, but Russia’s invasion of Ukraine drove up prices.

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