After a short break the US wheat futures resumed the rally. Partially it was due to those speculators who were closing long trades.
At the same time some market participants are concerned about the drought in some parts of the US, which may well make the forthcoming sowing campaign of winter wheat rather problematic.
The results of this week’s export are lower than expected. Nevertheless, the fact didn’t have a serious impact on the market.
Some US experts are reassured by 2 factors: Firstly, the export price on the Russian wheat is growing from tender to tender. Secondly, the aggressive Russian export may exhaust the country’s potential. After that the demand for the US wheat will increase once again. The price on the US wheat has already grown a little.
According to Ivan Kurapov, Chief of the Department of Market Sentiment Analysis, , there has been no clear tendency in the market of wheat for the last 12 months. It is necessary to wait till the price comes out of the existing price range and consolidates outside.
