Market Perspective

By PEARSON BURKE

Wheat markets continue to consolidate. On the charts, Chicago wheat has formed a double bottom; we will see if that holds. If so, then the downtrend has been broken and at least a sideways pattern can be expected. From a seasonal standpoint, the wheat market is due for a break from the selling that we have seen for the last 3 months.

Fundamentally, last Tuesday's USDA Crop Production Report changed U.S. wheat carryovers for next year only slightly. But world wheat carryovers were raised 3.5 million metric tons from last month mainly due to increased production for Russia (+6 m...