U.S. Wheat Rally

[crusher]

I see Dec KC wheat closed near its six month high yesterday. Does anyone know why wheat is seeing strength when corn and beans are slumping? If the Canadian dollar wasn't so strong, then CWB FPC would be okay.

We won't be combining around Edmonton for another four days. I'm waiting for my 25 day harvest window to start anytime now.

[melvill]

There isn't much change in the wheat fundamentals but, apparently, the wheat market has just run out of selling interest. Funds have been slowly covering their very large short positions but they still hold a big short position, especially in Chicago wheat. Commcercial buying also showed up to help move things up yesterday, too.

We'll see a more buying this morning (Wednesday) but whether this is the beginning of a wheat bull run or just an evolving sideways market remains to be seen. The big "if" is 'if the funds decide to cover a large part of their short' positions . . . . . .

[TOM4CWB]

Crusher;

DTN said this:

Once again this morning, forecasts for Canadian harvest weather are mixed, with those out of Canada looking for drier harvest conditions. This remains the key fundamental threat facing wheat, as the quality of roughly half of the Canadian crop is in the balance, which could impact U.S. export prospects. As prices have risen this week, producers have stepped up selling, which is a good move since prices are not expected to hold at these lofty levels for any length of time"