Short position coverage by fund companies after hitting the recent 2-month low and buying activity by fund companies closed the wheat futures yesterday in Chicago with a slight premium. In addition, the beginning winter wheat harvest in Texas is causing crop pressure. The US Department of Agriculture rated 52% of US winter wheat stocks top-rated "good to excellent" at the end of last week (previous week: 53%). Institutional investors yesterday bought 1,000 contracts of CBoT SRW wheat. The e-CBoT is currently trading with moderate losses. At Euronext in Paris, traders rated the lower harvest prospects in the EU more than the currently weak international export demand. Wheat sales increased moderately with comparatively weak sales. The EU crop monitoring service "MARS" shortened its forecast of common wheat yields in the block on Monday, citing dry and hot weather. The French agricultural consultancy Agritel initially rated the international demand for the new crop as "rather subdued". On the cash market in Hamburg, the premiums for export wheat with 12% protein for delivery in September are 1.00 euros below Paris Dec. 20.
Source
Hansa Terminhandel GmbH
