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Technical analysis August 3
The wheat quote on the CBoT took a step back last trading session. The September contact price fell more than 1% to $7.74,75 per bushel. The cautious resumption of grain exports from Ukraine dampened the mood on the wheat market. As a result, more wheat can eventually enter the world market again.
With the fall in the wheat price, demand is picking up again. According to sources within the European grain trade, Algeria has bought about 660.000 tons of wheat. Jordan, the Philippines, South Korea, Tunisia and Japan are also currently on the wheat market. This increased interest in wheat lays a solid foundation for wheat prices. American wheat exports are hampered by the high dollar exchange rate. On the world market, wheat from the US is therefore relatively expensive.
Corn and soy also took a step back on the CBoT. Soy closed at $15.69,25 per bushel and corn at $5.91,25 per bushel. Here it is mainly the Crop Progress report from the USDA that still had to be processed by the market. The ministry came completely against analysts' expectations with an improvement in the condition of soy in the American fields. The condition of maize was kept the same as the previous edition of the report.
Traders remain under the spell of the weather reports. The western parts of the Midwest are warm and dry. According to the weather models, that will not change in the coming days. Now an improved yield is weighing potential on the quotes. However, several experts believe the USDA was too optimistic in this edition of the Crop Progress report and expect a correction next week.
Jurphaas Lugtenburg
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