Market Perspective

White wheat cash markets firmed last week despite slightly lower futures and in the face of the Australian and Argentine wheat harvests. Export sales picked up with a total of 4.9 million bu in white wheat sales for the week ending November 15. Total wheat sales added up to 22.7 million bu, a sizeable increase from the previous four-week average. The world price for wheat remains firm, and there was even 2 million bu of soft red sold to Egypt last week.

Wheat futures, on the other hand, remain in a narrow trading range at just above contract lows. Speculative funds once again hold a net short...