July wheat was trading 5 3/4 cents higher near 7:30 am cst. Outside market forces look supportive today with a recovery in gold and crude oil and more stable equity markets. The market was blasted with negative sentiment yesterday led by uncertainties for European and Chinese economies. The dryness trend in the Black Sea region and a downgrade in the US winter wheat crop, however, are still seen as supportive forces. If Black Sea wheat areas stay dry in June, the other key exporters will be in a position to see much better exports. The move to a new 22-month low for the euro currency would suggest exportable surplus from Europe may be in demand. July wheat traded moderately lower on the session early yesterday and stayed in the early range for much of the day. Ideas that the rally in the past week was too aggressive, weakness in outside markets and further talk of at least some rain in Russia to ease drought concerns helped to pressure. Traders see good weather for the spring wheat crops as an offset to hot and dry weather for western Nebraska/eastern Colorado hard red winter wheat areas for this weekend. The heat could further reduce crop condition ratings. More talk of adequate world supply and the overbought short-term condition of the market helped to pressure. For weekly export sales this morning, traders see wheat sales near 450,000 tonnes as compared with 711,400 tonnes last week. India is attempting to export part of a massive stock to make more room for new supply.
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