According to Mercantile, Russian officials seem determined to tighten controls on the wheat market. Early indications are that traders are complying, but even with the increase in prices, Mercantile says Russia remains one of the cheapest origins for wheat on a FOB basis. Mercantile says the amount of relief (or lack there of) the rain brings to the winter wheat areas of the U.S. and Russia will be watched.

Mercantile recommends selling 25 per cent of your wheat production at $8.00/bu for a #2 CRWS