- It appears that the markets are appraising fresh global demand in wheat, particularly from China. CBOT markets closed a touch higher and some short covering was noted as export demand was confirmed and US weather outlook was construed as “uncertain”.
- European weather conditions appear to be beneficial for development of the late crop, whilst private Russian crop estimates are reduced slightly and have the feel for further reduction if dry conditions persist.
- Harvest is building in southern Europe and last year’s biggest buyers from the Black Sea, Egypt and Turkey, are not there as buyers right now. This adds to “harvest pressure” and the situation in Egypt may well make Syria look like the warm-up act.