Highlights
All three wheat classes were lower yesterday, but the price free-fall was stopped by Egypt and Algeria submitted tenders to buy wheat. However, many wheat market analysts expect wheat to continue in a down trend as Northern Hemisphere harvest progress is more rapid and larger than normal. Despite the USDA increasing the size of the world wheat production by 5.5 million mts last Friday, the world will still produce less wheat than it uses this marketing year for the fifth consecutive year. World production, according to USDA, will be 796.2 million mts and consumption will be 799.9 million mts.
Oil prices fell Monday night into Tuesday morning as weaker-than-expected economic data from China sparked demand concerns. WTI crude fell back to near $80. However, traders remain positive that the current quarter could be the tightest of the year for global crude supplies, with inventories depleting rapidly.
Later yesterday morning, crude oil inventories were reported 4.44 million barrels lower for the week ending July 12, according to The American Petroleum Institute (API) after a draw-down of 1.9 million barrels the previous week. Crude inventory in the U.S. has declined three consecutive weeks, for a total loss of 15.5 million barrels.