Wheat prices are rising under the influence of fundamental factors
on Tuesday, the speculators in Chicago have recorded profits and with the media resumed their buying, and began to close short positions.
However, the price increase was due not only speculative, but also fundamental factors. Too dry weather in the Midwest will complicate planting of winter wheat. In addition, traders are expected to reduce the forecast gross yield of wheat in the United States, first of all, spring in the next quarterly report USDA.
Yesterday's rising prices kept strengthening US dollar caused by intentions in December the fed to raise interest rates. It will reduce the competitiveness of U.S. wheat, so the experts reduced the weekly export expectations to 250-450 thousand tons.
December quotations of wheat in the U.S.:
- soft wheat SRW in Chicago by 2.85 $/t to 169,57 $/t,
- for hard wheat HRW in Kansas city by 2.48 $/t to 168.65 $/t
- spring wheat HRS in Minneapolis by 1.38 $/t to 238,74 $/t
French wheat more expensive for a third straight day with support of Chicago due to the weakening Euro, which adds optimism to exporters.
- December futures milling wheat on MATIF rose by 0,50 €/t to 167 €/t (196,23 $/t).
Investors are watching the situation in Australia and Argentina that can significantly reduce wheat production through adverse weather conditions.