After hitting a 10-year low on August 30, the market has spent the past five weeks consolidating around $4/bushel, says Ole Hansen, head of commodity strategy at Saxo Bank.

CBOT wheat dropped 30% from June to August as the outlook for the 2016-17 harvest continued to improve. 

Hedge funds held a near-record short position of 131,000 lots in CBOT during the week of September 27, somewhat bigger than the two-year average net-short of 56,000 lots.