Some day’s I simply cannot believe what I read in the market wires. This morning’s ripper is “US drought fears boost row crop markets”. Now to put this into perspective there has been concern that corn acres in particular would fall short of the USDA target due to planting delays caused by rain….. yes its been too wet. This hasn’t occurred and corn planting has progressed nicely in ideal conditions. Conditions so ideal that there is actually some concern for the quality of the wheat crop due to disease risk.

At the end of the day I think the main support in US futures came from the weaker US dollar and a reduction in projected corn exports from Brazil of around 7mt. Wheat futures in the US were higher. This was against US and global fundamentals that are actually becoming very bearish for wheat. I guess when the markets are already very low it’s hard to push them lower though. First the funds have to rally them a bit before they can take profit as they push them back to where they should be.

There are a few wires starting to talk about possible quality concerns in French wheat as well. Last year their hard wheat crop and durum in the south of France was devastated by rain. The forecast shows that showers in France should begin to push north into Germany but western France and parts of the Ukraine and Turkey could see double their normal June rainfall.