Wheat futures have slipped lower this week. London November 2021 wheat futures closed below £170/t for the first time since mid-April. Grain markets have been pressured by wetter and cooler weather across the primary US corn producing states, which are conditions that are ideal for the pollination period and signal improved yield potential.

Speculative funds have been active sellers, reducing their long corn futures positions, which has also helped to lower wheat prices. The US winter wheat harvest advanced rapidly, up 13 points on the week, and is now around 17% complete, which is adding some harvest price pressure. In contrast, the northern US states have stayed mostly dry and expanding drought is proving increasingly damaging for spring wheat crops. 

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