Worries on lower wheat supplies from other exporting countries, Russia, Argentine, Australia and Ukraine will still increase the US wheat futures this week. However, this increase will not be significant as export demands of US wheat have not been boosted yet. According to USDA’s report, net export sales of 362,900 tones on Oct.25 were near the low end of trades’ expectations for sales in a range of 300,000 to 600,000 tons. Recent appreciation of US dollar also puts pressure on export demands of US wheat. This appreciation affects corn and soybean export demand as well. Corn futures will decline as large speculators cut their bullish expectation on corn futures. The Commodity Futures Trading Commission’s weekly commitments of traders reported that non-commercial traders including speculators reduced their long position in corn and soybean. Reduction of 46,901 long contracts of wheat was the biggest since the long contracts were cut by 47,412 in November, 2011. Reduction of long contracts means that more contracts are available in the market. Thus, corn and soybean futures will decline this week. However, I predict that USDA crops estimation on Friday, November 9, will report that low amounts of grain are available in the market due to drought and recent hurricane.  I expect dramatic increases in three crops futures on that day.  I will take long position of wheat and short position of corn and soybean this week, but I will offset all short positions on Thursday and take long position for Friday’s rally in all grains market.  (First of all, I will offset remaining short position of wheat

http://online.wsj.com/article/DN-CO-20121102-009515.html

http://www.brecorder.com/agriculture-a-allied/183/1254411

http://www.businessinsider.com/the-worlds-biggest-wheat-exporting-countries-2011-4?op=1

http://rbth.ru/articles/2012/07/29/russia_to_cut_grain_exports_by_half_16793