Inside: Grains & Raw Material
Tension over US wheat price is rising
Wheat markets were on an upward trend on Wednesday, September 27. Read more? Subscribe to 'Granes & Raw Material'.
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Choose the subscription that suits youThe positive sentiment is driven by technical selling and concerns about dry conditions in the country's Midwest, where farmers are sowing the 2018 crop. It was enough for the market to skyrocket. The December contract on the CBoT settled at $461,50 per bushel. The highest point reached was $462,75 per bushel, the highest level since August 2015.
US wheat production down
In addition, there was another reason for traders to adjust their positions ahead of the USDA report. The expectations for this are that US wheat production for 2017 will be reduced. This news lasted on Thursday September 28 and stopped a further climb.
The Matif also achieved green figures on Wednesday, September 27, but profit taking was slightly smaller there. The December contract closed at €167 per tonne. The falling euro-dollar exchange rate has been supporting European prices since the beginning of this week.
In recent weeks, the closing price of wheat on the CBoT has been mainly rising.