I believe that next week, wheat price will still go up. The most important reason is still the point that the harvest is coming to an end. There are some other reasons too.

First of all, the market’s focus remained on wheat as expectations of smaller crops in places like Argentina and Australia, coupled with dry conditions in key growing areas of the US Plains, provided support to a commodity that has been stuck in a narrow trading range for months. The supply is decreasing. The price will go up.

Secondly, “Kansas, Colorado and Nebraska are dry and global wheat stocks are falling. At some point this winter wheat business is going to shift back to the US. That time is getting pretty close,” a wheat trader on the floor of the Chicago Board of Trade said. USDA also was seen cutting its global wheat stocks forecast for the second month in a row due to weather-related problems in key growing areas such as Ukraine, Australia and Argentina.

Thirdly, Australia, the world’s second-largest wheat exporter, is expecting a much smaller crop this year, with early harvest showing lower protein scales and poor yields. Traders said rains forecast over the nation’s east coast could slow the harvest. Asia’s top buyers, who rely on Australia for the bulk of their milling wheat supplies, may be forced to import larger volumes of high-protein spring wheat from the United States and Canada. This will also rise the wheat price.

The strategy for next week is really easy. I will go long for two contracts. I believe the price will rise a lot next week.