NEW YORK (TheStreet) -- Wheat futures prices are in a strong rally, recording gains for the fourth week in a row last week, and moving in that direction for a fourth consecutive month. Unfavorable weather for U.S. crops and the ongoing crisis between Ukraine and Russia contributed to the inflating prices. Meanwhile, soybeans pared some of last week's gains, which were due to lower U.S. supplies and surprisingly high imports by China.
The Teucrium Wheat fund (WEAT) tracks wheat futures. The fund opened 1.3% down at $16.41 on Wednesday at 10:30 a.m.
Wheat futures for July lost some of their gains Friday after a monthly report from the U.S. Department of Agriculture. The initial estimates by the USDA for 2014 winter production were for 1.4 billion bushels, very close to the market's expectations. Even though prices slipped by 1.5% after the USDA's report, wheat futures clinched a slight increase of 6 cents per bushel for a fourth consecutive week and are currently trading at $7.22 a bushel.
Wheat's performance has been interesting. Even though last week's increase was marginal, since the beginning of February the price of wheat has increased by more than 30%. Soybeans erased some of their losses and had their first weekly increase since April 20. The grain is trading at $14.97 per bushel.
Overall trading activity in grains was weak ahead of the USDA's economic indicator on crop production, supply and demand, and expectations on forthcoming wheat production. The markets were expecting the USDA's forecast for the 2014 to 2015 period to surpass the 744 million bushels achieved last year. However, some others believed that the expectation was optimistic because it has been a very harsh winter.