After CBoT wheat futures traded at an annual high yesterday, there is some profit taking this morning.
The price of c1 wheat futures (front month) has improved by 10.2% this year. This increase was also traded in August.
The recent strengthening of the price came after the South China Morning Post reported that China's Vice Premier Liu He will travel to Washington next week to sign the Phase 1 trade agreement with the US. In this agreement, China undertakes to purchase more US agricultural commodities.
The date has also just been confirmed by Washington.
It was reported yesterday from Russia that export prices for wheat rose again last week - for the seventh time in a row. A firm exchange rate for the Russian rouble and reports of the critical condition of winter crops in the Black Sea region are cited as the reasons for this.
Source
HANSA Terminhandel
