Russian wheat upside capped by softening fundamentals

Russian 12.5% protein wheat is likely to move sideways in the next weeks as soft fundamentals cap its recent price surge. A well supplied market, offering between 150,000 to 200,000 mt of wheat on the prompt, has seen prices tick lower amid an insufficient number of buyers available to absorb the amount of wheat on offer. Prices recently rallied $14 over the course of three weeks to $240.25/mt. Similarly, the euro showing weakness against the dollar saw buyers drawn toward Baltic-origin wheat, which was offered $3 lower at $236/mt.