Technical buying brought strong gains in wheat yesterday in Chicago. In the course of trading, a new 2 ½ week high was reached, but this could not be sustained. In large parts of the US Plains, as well as in other world-wide important export regions like Canada, East-Australia and South-Russia, dry weather is burdening the wheat stocks. Institutional investors yesterday bought 10,500 lots of CBoT SRW wheat. The eCBoT is trading a bit harder this morning. At Euronext in Paris, wheat futures benefited from the good overseas guidance and increased significantly on all dates. Support came from the continued weak exchange rate of the euro. Wheat volatility, which declined in recent years due to steady inventory creation, is reappearing and market participants are becoming aware of the potential tensions between supply and demand for the new season, Agritel wrote yesterday. The EU Crop Monitoring Service lowered its monthly estimate of EU common wheat yields in 2018 from 6.23 to 6.19 tonnes / hectare. In eastern Germany and other regions, wheat stocks suffer from a lack of rain and the mixture of high temperatures and wind.If the conditions do not improve in the coming days, yield losses are expected.
