Related Keywords: Agriculture Email Print | September Wheat finished down 60 at 725 3/4, 115 1/4 off the high and equal to the low. December Wheat closed down 60 at 755 1/4. This was equal to the low and 112 3/4 off the high. December wheat traded at near limit up in the overnight session before falling to a limit down close in the day session. This was far and away the largest range seen in the December contract during the July-August rally. This came on a day when some of the panic that had gripped the wheat market yesterday subsided. That panic came as importers launched tenders and attempted to switch origins from Russia and Ukraine following Russia’s announcement that it was banning grain export for the period from August 15th through December 31st. Egypt may have helped to calm the markets by stating yesterday that its needs were covered for the next six months. Brazil and Argentina also weighed in with comments that pointed to an improved supply situation in that region into 2010/11. The status of existing Russian contracts remains unsettled with Russian officials stating yesterday that existing contracts would be affected by the ban. A senior official said today that exiting contracts would in fact be honored, but further reports from traders in Europe today indicate that some Russian grain export contracts have already been cancelled or switched. The US is expected to be the main beneficiary of the shift in demand away from the Black Sea. Soft red wheat basis levels were up sharply at the Gulf today. December Oats closed down 2 1/2 at 292. This was 10 1/4 up from the low and 7 off the high.
Bron:CME