Since the last three trading sessions, the CBoT wheat has lost most of its value since mid-December; The fear that the snow cover in the wheat-growing regions of the USA and Russia could not provide sufficient protection against hibernation, but hitherto prevents greater losses.
Both in the US and in Russia, it is too dry in the grain regions, which should not change for the time being, according to the weather services there. But for the market observers in Far East Asia, it is still too early to quantify the extent of possible damage in Russia.
The fierce competition from Russia on the world market is troubling traders in the European Union. Since the beginning of the 2017/18 marketing period, the EU has exported 10.6 million tonnes of wheat by 2 January 2018. That's 2.7 million tonnes or 20% less than the same period last season.
Text: HANSA Derivatives Trading GmbH / / Graphic: Saxo-Trader 
