The dry and cold weather may have reduced potential yields in several parts of Europe, including acreage that had to be replanted.
The condition of wheat plants have improved last week in the US. The US Department of Agriculture raised its plant rating by one percentage point to 53%. At present, there is no reason to fear that the supply of wheat in the northern region could tighten noticeably in 2016, says Commerzbank.
The expected better wheat production will put pressure on prices. At the same time, the strong dollar is affecting the wheat exports in the US. Wheat exports in the week to 17 November were 17% down in compare to the previous week, notes Commerzbank.
