Wheat Market Outlook - July 8, 2024

According to Mercantile, activity in Russia indicates that the shortfall in production was not huge and Russian traders are eager to make up for the business they missed because of the floor price. Additionally, they need to find markets outside of Iraq, Pakistan, and Turkey which usually provide strong early demand. Meanwhile, smaller crops in France mean that farmers are reluctant to sell. Harvest pressure for wheat is building, while buyers have little-to-no cover. Mercantile thinks the sellers will be more aggressive, so expect futures will be weaker. However, they would hold cash sales for now as long as producers are ok for space and cash flow.