Speculative fund short covering has driven wheat futures higher in recent days, led primarily by gains in the Paris market. The May 2024 contract breached €200/t on Tuesday which was the market's highest level since 27th February 2024.
The funds had built record short positions in the Paris wheat market but improved physical wheat demand, Black Sea supply concerns and EU political moves have been the catalysts to trigger a need to reduce the exposure to potentially higher prices.
You can also listen to the Frontrunner podcast - press play to hear the latest report. The report this week is read by farm trader, Lucinda Redgate.