The wheat market enjoyed another nice rally last week, at least until Friday, but it was hard to figure just what the move meant.
To be sure, U.S. exports are strong, with sales and shipments setting marketing year highs last week. Supplies of milling quality wheat remain relatively tight, because weather is turning more of the world crop than expected into feed grade.
And yes, importers around the world are trying to restock their shelves following this year's move to record prices that cause many to cut back. But even here higher prices eventually trigger some resistance, with Pakistan postponing a tender and Japan buying only small amounts. While the Pakistani move may also have had something to do with the country's uncertain politics, one can bet deals would have gone through if the price was right.
Friday's setback damaged the market's August rally, which could lead to further selling this weak if other markets don't lend support. To read Bryce Knorr's full wheat review, click HERE.