Technical sales and the advancing US wheat harvest caused prices for wheat prices in Chicago to fall yesterday. The USDA said 54% of US winter wheat stocks are in top shape (+ 2% from the previous week). Institutional investors sold 2,500 contracts of CBoT SRW wheat yesterday. The e-CBoT is trading almost unchanged this morning.
At Euronext in Paris, the wheat futures followed the weaker overseas guidelines and also gave way. The rise in the exchange rate of the euro against the US dollar and widespread rainfall in major Black Sea export regions in Russia and Ukraine also weighed on exchange rates. Dry weather this week in France and related risks to grain stocks there limited the downside potential. On the cash market in Hamburg, premiums for export wheat with 12% protein for delivery in September hardly changed at 1.00 Euro below Paris Dec. 20. Institutional investors at Euronext reduced their net long holdings in the week up to May 22nd in Matif wheat from 82,110 to 79,426 net long positions.
Source
Hansa Terminhandel GmbH
