- We wish that we could find a real fundamental that would justify Thursday’s US wheat rally. EU and Black Sea cash prices were either flat only slightly higher, but Chi/KC and Minneapolis wheat futures soared on massive fund buying. As the chart below reflects, sometimes there are just too many positioned the same way and a counter/house-cleaning rally is needed. That’s what happened in US wheat futures yesterday. It is possible that wheat could add to Thursday’s gain, but we would view any rise near $5.50 Dec as a sale.
