The market continued to trade lower in the past week, setting new contract lows in both Chicago and Kansas City before bouncing back to finish unchanged.

Speculators have turned bearish towards grain and oilseed markets as heavy stocks and largely non-threatening weather for US corn and soya crops keep the lid on prices.

Traders will be keeping a close watch on events in the Gulf of Mexico, following Hurricane Harvey’s destructive arrival and its impact upon export shipments, as the area accounts for about 25% of total US wheat exports.

European markets followed the US markets lower, before a dip in the euro from a 2.5 year high against the US dollar allowed Matif to recover to week-ago levels.

The market remains under pressure from the low level of EU exports and rising Black Sea production, which has resulted in a very aggressive early shipping programme from the region.

Russian wheat, as seems the pattern, took the majority of the recent Egyptian tender. Although two French cargoes were offered, they were about $10/t too expensive.

France has completed its soft wheat harvest, but rain delays continue to hamper progress in the northern parts of Germany and Poland, increasing fears over final quality.

UK prices are a few pennies higher on the week, as the harvest rumbles on. Increased supplies of wheat are becoming available but, in the north and west, supply still seems short against current demand.

UK farm prices are still at relatively high levels, so growers able to sell into the few spot premium markets that exist would benefit.

In summary, it feels that the market is taking a breather before its next move.  Funds are now short, low prices have slowed farmer selling, and issues still surround the supply of global higher-protein quality wheat.

However, supplies of feed grade wheat and other coarse grains are burdensome, and with weather deemed as non-threatening, this should provide a lid on any price rallies.