The Wheat market is being supported by weakness in the dollar index overnight, spillover strength in corn, disappointing spring wheat harvest reports and concern that drought in the southern Plains could reduce the 2012 HRW crop. Spring wheat condition ratings fell 4 points last week to 62% good to excellent. That compares to 82% last year and the ten-year average of 58%.
Minneapolis hard red spring wheat for September, having touched a two-month high for a spot contract of $9.69 ¾ a bushel, closed down 0.2% at $9.43 ¼ a bushel.
With that, Chicago's September lot got a touch of vertigo too, retreating from its own two-month top of $7.48 a bushel to close at $7.35 ½ a bushel, up 0.7% on the day.
That, indeed, left it outpaced by some European wheats which, thanks to geography, took an extra edge from the deteriorating German situation, and potential Russian concerns.
London wheat for November closed up 1.6% at £166.00 a tonne, while Paris wheat for November ended 0.7% higher at E203.25 a tonne, slowed by a minefield of key chart points.
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Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.