Wheat prices on the CBoT are increased until noon today by a further 2%. Also the rare courses advised that in the wake of rising rates. Traders are worried about the amount and quality of the wheat crop in the EU. The EU is the most important grain exporter in the world.
The estimates for the European grain harvest were clear as expected lowered, in particular for France because heavy rainfall led to have the grain stocks more damage in May and June than previously expected. French wheat harvest is probably the worst for 13 years. Estimates range from 28 to 32 million tonnes the previous year harvest brought 41 million tons.
Also the German cereal harvest suffered from too much rain falls, but not as much as the French.
Many short hedger now reduce their derivatives positions. The last numbers of the U.S. Agency, CFTC show that short positions are continuously developed.
