Profit taking following the sharp rise of the last two trading days and the firm exchange rate of the US dollar caused wheat prices in Chicago to close moderately at a low price yesterday. The decline was limited by the drought in the US Plains. As part of the Kansas Crop Tour first results show strong yield loss in HRW wheat in southwestern Kansas and northwestern Oklahoma. In northern Dakota, summer wheat sowning is slow to get going. Institutional investors yesterday sold 4,500 lots of CBoT SRW wheat. The eCBoT is weaker this morning. At Euronext in Paris, wheat futures benefited from the previous day's rise in Chicago and ended up with substantial mark-ups. Drought in Australia, news of dry conditions over the coming weeks in the Black Sea region and the weak euro added additional support to the market. Euronext's COT report shows that institutional investors reduced their net short positions from 24,976 to 22,401 last week. The "Business Entrepreneurs" group, which includes hedgers, increased its holdings of net long positions from 27,970 to 32,201 lots.At the cash market in Hamburg, the quotes for wheat with 12% protein fell by 1 Euro to 2.50 Euro via Paris May 18.
