December Chicago wheat is trading 7 cents higher near 7:30 am CST. Kansas City and Minneapolis wheat are slightly higher as well. The wheat market recovered from yesterday's sharp loses overnight after corn and soybeans bounced. European stocks edged lower as a working group led by Germany's deputy finance minister discusses the economic impact if Greece were to leave the Euro zone. Asian shares fell overnight and Dalian corn rose. US treasuries saw marginal gains against a slightly higher US Dollar. The wheat market tried to shake off the sharply lower corn trade yesterday but ultimately fell victim to profit taking and technical sell pressure. Bull calendar spread unwinding was noted by traders. Wheat has since bounced higher but additional profit tacking in the corn market could limit gains. The US remains uncompetitive in the world market with Black Sea wheat trading nearly $30 per tonnes more than European or US. Losses yesterday narrowed the price spread as the Gulf of Mexico basis for wheat was steady. The global wheat balance sheet continues to contract and the International Grains Council cut their world wheat production 3 million tonnes to 662 vs. the current USDA estimate of 662.83. Further cuts to the global balance sheet are possible for Russia, Ukraine, Kazakhstan, and Australia in the month of September.
Read More on International Business Times