- At last we have a day with a more positive tone as some price recovery is evident ahead of the US extended holiday weekend to celebrate President’s Day. Profit taking and a degree of “risk-off” is likely in view of the shifting nature of S American weather at a time when it is so crucial to ongoing crop development.
- In addition to pre-weekend position squaring and profit taking we hear of rumours that both China and Brazil are looking for US wheat, suggesting that US prices are low enough right now.
- Forecasts for the EU’s wheat output issued by Stratégie Grains this week are reduced by just over 1 million mt to 132.2 million mt. The number one and three producers, France and UK, account for just over a 4 million mt reduction following poor autumn sowings, reduced acres and likely damage as a result of wet weather. The EU’s overall output is not reduced as much due to improved prospects elsewhere within the region.
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