Profit-taking following Tuesday's strong gains, the renewed tightening of the US dollar exchange rate and negative targets from Kansas City and Minneapolis wheat weighed on wheat prices in Chicago yesterday. Institutional investors sold 2,000 contracts of CBoT SRW wheat yesterday. This morning the e-CBoT is trading with moderate losses.
At Euronext in Paris, the wheat futures followed the negative overseas guidelines and closed at discounts on all dates. Signs of a weakening export demand put an additional burden on the market. Traders report that the demand for German wheat is weaker this week. The losses were limited by the weak euro exchange rate, which had fallen to its lowest level in almost three years. However, the weaker euro exchange rate was unable to sufficiently compensate for the decline in Russian export prices. On the cash market in Hamburg, premiums for export wheat with 12% protein for delivery in March remained unchanged at 4 euros above Paris March 20. Institutional investors again increased their holdings of net long positions on wheat at Euronext last week.
Source
HANSA Terminhandel
