The wheat contracts on the Euronext/Matif and the CBoT started the weekend with a clear red sign. The December WASDE published by the US Department of Agriculture on Friday evening was unable to stop the price trend of the past few days, particularly on the CBoT. On the Matif, the most traded March date went south by EUR 4.50. In France, according to the local Ministry of Agriculture, 95 percent of the winter wheat stocks are in good or very good condition. Also depressing was the news that Egypt had bought 260,000 tons of wheat for delivery in December and January without a tender in Russia. In Friday's WASDE report, the USDA cut global wheat production by 2.1 million tons from the November estimate. This production cut is mainly due to the drought in Argentina. The Ministry also expects a lower wheat harvest for Canada. The cuts are offset by better prospects in Australia, Ukraine and the EU. Green signs are showing on the eCBoT before the trading day.
Source
VR AGRICULTURAL
