Wheat Recap 8/14
Friday’s less than bullish report lingered over the weekend and into today’s session. With little news fundamentally over the weekend to stop loss we saw another quarter taken out of the market.
It seems the report has scared index funds as we have seen significant liquidations of positions in both Chicago and Kansas City. Increased production and better stocks than expected have the funds playing a different tune.
Russia sold 120k MT September delivery over the weekend to Egypt, at a 30-40 dollars/ tons cheaper than the best U.S. offers. It’s no surprise with current price levels that we are uncompetitive internationally, but this is a good indicator as to global values.