Wheat spreads and outright prices covered pretty much the same ground as Monday and Tuesday. Since outright prices are at recent lows and within a dime of contract lows, and CBOT calendar spread prices reflect the steepest levels of contango in recorded history, I would characterize this as a consolidation--likely to be followed by more bear market action for wheat prices and related spreads. No bullish news has surfaced in wheat; weather news is pointing to a large, healthy crop.
Macro factors do not seem to be having much impact on the wheat market. Wheat is not responding to moves in the USD. There doesn't seem to be any chatter regarding potential impact from banking reforms. Analysts' estimates of wheat consumption have not been impacted by fresh prospects of a double-dip recession. Generally speaking, all of these factors would be fresh negatives for wheat, but, so far, there is little interest from speculators in shorting wheat at current levels.
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