Weaker than expected harvests across the Europe lifted December Chicago Wheat futures on CBOT (WHEAT). Prices are higher more than 1% on a daily basis, extending 'trend-reversal' pattern amid improving technicals and fundamentals. The new market structure has potential to put further pressure on commodity short-sellers. The Commitment of Traders (CoT) report from 27 August signals short covering across bearish-headed speculators.

EU, Russia and Black-Sea region will report lower wheat production this year. EU Commission usable wheat production dropped from 121k tons to 116 k tons, expected now. Argus research also lowered France crops to 25.17 million tons this year (23% lower on a yearly basis). Also, Ukraine commented that production can drop 15% from current levels.

Source: Hightower Report

WHEAT (H1 interval)

Source: xStation5