The weak demand for US wheat on the export market as well as improved harvest prospects in the Black Sea region caused wheat prices in Chicago to close yesterday with slight losses. The weekly US export inspection with 457,777 tons of wheat was within the market expectations of 400,000 - 600,000 tons. The USDA yesterday raised wheat crop ratings to 54% good-to-excellent (previous week 52%). Institutional investors yesterday sold 1,000 contracts of CBoT SRW wheat. The eCBoT deals with further discounts this morning.
Wheat futures also fell on Euronext in Paris. The main reasons were the firmer euro exchange rate and the weaker price trend in the United States and Russia. Over the next 10 days, weather services expect rainfall in parts of the Black Sea region to alleviate drought concerns. However, dry and warm weather is expected throughout Western Europe. The widespread rain in the past few days in Germany in the north and east has helped to alleviate fears of crop damage after the dry season. However, more rain will be needed in the coming weeks to get a good harvest.
Source
Hansa Terminhandel GmbH
