Wheat markets surged higher on Friday, responding to a stellar export sales report.
Wheat has struggled to just hold the harvest lows, with Kansas City now trading below them.
U.S. futures slid this week, testing harvest lows yet another time until a sharp rally in soybeans pulled corn and wheat higher.
Egypt buys U.S. wheat.
Technically, wheat is stuck in a narrow trading range. I expect that it will eventually move above the topside of the range and grind higher through the winter, writes market analyst Louise Gartner.
Pressure in the equities market could also affect the wheat market along with the broader commodities space.
Higher than expected stocks aside, longer term fundamentals remain bullish.
This week, USDA’s supply/demand report cast a bearish slant to world stats as they increased world production by 3.4 million metric tons.
World trade activity tends to pick up this time of year, when harvest supplies are readily available.
A stronger start for the week morphed into a huge spike on Thursday, only to see it fail that same day and give up the whole day’s rally.