According to Mercantile, it was the volume and price of Russian wheat offers to Saudi Arabia and to Egypt at $100 below Hard Red Wheat which took the market lower. The USDA WASDE report added to the weakness with a 10 million tonnes increase in world wheat production and 6 million tonnes increase in world stocks says Mercantile.

With the weather forecasts looking benign, Mercantile expects markets to go slightly lower.  They have two markets: Futures represent the USA market, where growers are holding looking for better prices, and cash markets, which are much lower. Eventually, they must meet, and Mercantile doesn’t see much that will lead cash markets higher for the present. The weather needs to be watched, but at the present weather futures look average to better than the previous year, particularly in Europe says Mercantile. 

Reports Mercantile receives from the country are generally good, but more rain would be liked on the Prairies. Mercantile expects futures a little lower but would hold cash wheat sales for the present.