Wheat Update: Downside Risks To USc600/bushel Forecast In 2009

In this wheat update, we note downside risks to our core view for an average price of USc600/bushel in 2009, which we set out in our latest forecast (see 'Commodities Forecast: Wheat To Average USc600/bushel in 2009', July 15). Wheat prices have been in a downtrend since early June, weighed on by projections of a record crop in 2009 and we believe that if this trend persists, it would pose significant downside risks to our 2009 forecast. So far this year, wheat prices have averaged USc543/bushel, however, we still believe that it may be too early to revise our forecast given the volatility of late. Furthermore the wheat market still remains relatively tight on a historical basis.

To read the full article, please choose one of the following options: