Wheat futures in Chicago rose 3.3% yesterday, the highest level since May 12. Short position coverage by fund companies due to unfavorable weather forecasts for the northern US plains, Europe and the Black Sea region gave the market a boost. Today at 2:30 p.m., the USDA publishes weekly US export sales. Analysts expect wheat exports to range between 200,000 and 650,000 tons. Institutional investors bought 11,500 contracts of CBoT SRW wheat yesterday. The e-CBoT is still trading price gains this morning.
With increased sales volume, the wheat futures at Euronext in Paris followed the good guidelines from overseas and also posted profits on all dates. Warm and dry weather in parts of Europe spark new fears of loss of income. Russia's Minister of Agriculture Dmitry Patrushev expects a grain harvest in 2020 with a volume of only 120 million tons. This means that the forecast is lower than the previous forecast of 125.3 million tons. Dry weather conditions in the south of the country were cited as the reason for the expected decline. Institutional investors increased their net long holdings of Matif wheat from 74,153 to 82,110 contracts last week.
Source
Hansa Terminhandel GmbH
