Weak environment puts pressure on wheat prices

Wheat contracts headed south yesterday amid a weak general market environment. The price gains of the previous day were almost completely wiped out yesterday. Wheat yields of 6.7 t/ha are reported from Saxony-Anhalt and are thus well below the national average. The creeping desertification of the Altmark and parts of Anhalt is causing concern for both the producers and the authorities. Trading on the cash markets continues to run smoothly. The processors and mills are well supplied for short-term deliveries. Demanders are hoping for a better range of goods, but producers are still tending to store more due to the Matif development of the past few days. Overall, the markets, whether for agricultural commodities or financial stocks, are showing concern about the economy due to the current trend in inflation. The recent bullish development in wheat was also increasingly used yesterday for profit-taking on both exchanges. The better credit rating of spring wheat areas that have not yet been harvested in the USA is also causing selling pressure. Pre-market prices are slightly firmer today on the eCBoT.