Drought affects the wheat market more than cold

The winter weather in parts of Europe has a limited effect on the wheat market. This is not entirely illogical. It is indeed cold but for the real cold that causes damage to wheat, we need to look to the edges of Europe. Drought in the US makes trading in the US more nervous, although the wheat situation is not bad. China has found the US quite appealing when it comes to soybeans. Brazil, the main competitor of the US, is not worried about that at all.