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Markets appear surprised by bearish WASDE data

The prices of wheat and soybeans plunged after the US Department of Agriculture (USDA) revised up its estimates of global production. What’s more, it is projecting that global inventories of wheat and soybeans will reach new record-highs in the 2017/18 season. While ample stocks should place a ceiling on the price of wheat, we think that soybean prices will find support from strong growth in demand.

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