Highlights
Yesterday, a stronger dollar (six month high), fear of Trump tariffs, improving weather in Eastern Europe, Western Europe, South America, and in the U.S. winter wheat area all combined to encourage profit talking and then technical selling kicked-in.
Wheat market guru, Andrey Sizov had this to say about the wheat market yesterday:
"Over the weekend, Kansas received 20-40 mm (25.4 mm = 1 inch) of precipitation, offsetting the moisture deficit accumulated over recent months. Kansas is the biggest wheat producer in the US.
The strengthening US dollar also likely pressured prices. On Monday, the US dollar index closed at 105.5, up 0.5% from Friday, reaching its highest level since July 2024.
Russian exports continue to put pressure on global prices. SovEcon estimates Russian wheat exports in November at 3.7-4.1 million metric tons (mmt), up from 3.2 mmt a year earlier and a five-year average of 3.5 mmt.