Market Perspective

Wheat markets have been trying to find a bottom the last week. Recent support has come from concerns about the quality of the European wheat crop due to excessive rains. As much as a third of the French crop may wind up becoming feed wheat. They are having the same falling number issues that many of us experienced last year.

During the downtrend in wheat futures over the last three months, speculative commodity funds have accumulated a net short position of over 400 million bu. If the concerns over the quality of wheat in Europe continue this may spark a shortcovering rally in Chicago. The unr...