The Haney Group are making a strong recommendation to their clients to include Wheat as an integral part of their Commodities portfolio with rising prices fuelled by increasing demand and positive news on the World's markets.
The Haney Group a boutique equity research and management firm based in Hong Kong founded by a diverse private wealth consortium of financial professionals, with a combined knowledge of the stock markets, tax legislation, legal compliance and market analysis. Priding themselves in giving the very best service to their institutional investors, high net worth individuals and private investors recently advised its clients with respect to their holdings.
The Haney Group point to several recent events that have strengthened the case for investing in Wheat as a high performing commodity, the strong performance of CBOT Wheat increasing +1.029%, or $6.74 per bushel to $665.03 per bushel continuing strong performance is expected upon the coming weeks. Wheat consumption continues to grow, prices continue to climb, the high demand for this product is worldwide, and prices are reflecting this.
"The following months have the capacity for Wheat prices to exceed last year's historic prices. Demand was strong last year, but the underlying issue was crop loss midyear in many of the major wheat producing nations due to unfavorable weather. We have already seen this year it's all about existing shortages worldwide driving demand sky high and in the coming months prices are going to rise significantly," announced David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.
A number of countries have since the beginning of the year imposed limits on exports of Wheat in order to try to meet their own domestic needs, we have already seen this trend get more and more critical with Argentina ending exports entirely a week ago and this is just the beginning of the wheat shortage as demand is set to drive prices to an all-time high come the end of the year.
The Haney Group is encouraged by China's commitment to purchase 4 million metric tons of wheat imports in the next 6 months, which will be the highest import quantity in 9 years. Prices for milling wheat enjoyed their second consecutive day of gains in Paris. Rumors abound now that French grain is also to be purchased to make up for short falls in the Chinese purchase. China has increased its buying of wheat by over a third from last year.
"I think the only reason we haven't seen more interest from small investors in the past, is that they just don't see Wheat as a sexy product to hold in their portfolios. Larger and institutional investors on the other hand have always found Wheat, with its good dependable returns, year in year out as the near perfect investment vehicle, after all this is a product that has to be bought regardless of the price being asked and that makes it a great commodity to be holding at any size of investment," added senior analyst with The Haney Group.