Wheat markets have stepped lower this week again, strongly influenced by the fortunes for US corn. Chicago Board of Trade (CBOT) markets were closed on Monday for Independence Day but most of last week’s sharp price rally was lost on Tuesday following the long US weekend. CBOT corn opened 40 cents down but losses over the week amounted to 10% as US weather changed to cooler and wetter conditions. This was deemed ideal for developing corn plants as they head towards their pollination period.

Speculative funds have been heavy sellers, reducing their long positions and taking corn futures 10% below last Friday’s close through the week. It was not all negative news for corn, with analysts making further cuts to the Brazilian corn crop. Companhia Nacional de Abastecimento (Conab) dropped its estimate by three million tonnes from its previous figure to a new estimate of 93.385 million tonnes. It is anticipated that the United States Department of Agriculture (USDA) will publish a similar number on Monday in its July World Agricultural Supply and Demand Estimate (WASDE) report, down from its previous figure of 98.5 million tonnes. 

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