ChartsThis article was originally published in The Public Ledger
CHICAGO's latest rally attempt ran into resistance again amid strong competition for improving import business, accelerating US harvest and the ever-present anchor of massive world surplus stocks. Price rises on Chicago risk hampering already uncompetitive US wheat in the most contested markets of North Africa/the Near East. While US sales have fared much better recently in the western hemisphere, where it enjoys freight advantages, a huge new Saudi tender going mainly to German exporters and Egypt's latest order for Commonwealth of Independent States wheat was still deflating for the US market. On the plus side for the bulls, Canada's rain-delayed planting now seems sure to fall well below target with traders discounting a less bleak area estimate from official body Statistics Canada, as it surveyed too early to record all the lost acreage.