The Times - Serving Waitsburg, Dayton and the Touchet Valley

Wheat prices in Chicago have just touched their highest point since mid-August. Tuesday’s session closed up a dime, now at plus 63 cents in 22 trading sessions.

Clearly the fact that U.S. wheat is far over-priced into many export markets is not the driving factor. The underlying strength has had more to do with shifting positions held by large trading funds, now short-sold just 37,006 contracts of wheat in Chicago versus 55,151 in the week of 9-11.

As the funds complete their “cover” (buy back) of these positions as they eventually must, the wheat market will seek other factors, and export wea...