US Chicago Board of Trade (CBOT) wheat futures rallied to a five-month high earlier this week. Since early August, CBOT wheat futures have risen in value by an impressive 12%; impressive, because many regard the world wheat market as bearish. The United States Department of Agriculture (USDA) sees world wheat stocks rising by 16mt this season to a record 317mt. This prediction follows significant production increases for Russia and Canada and predicted increases for Australia.

In contrast, recent Chinese buying of US wheat, corn and soybeans has lead to a wave of fund short covering, pushing US wheat futures higher. US wheat and corn sales this week were at the top end of traders' expectations, with approximately 600,000t and 2.6mt sold respectively. 

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