According to Mercantile, wheat demand remains sluggish, and wheat continues to have little independent strength. Strong corn markets are propping up wheat values, the premium wheat holds over corn is narrow in both the futures and cash markets. Mercantile says the spread between the fund’s short in wheat and long position in corn is a record and could provide an opportunity should the funds decide to rebalance. In Mercantile’s opinion, U.S. wheat is expensive compared to most other origins but is cheap compared to corn.