A round of fund short-covering pushed through the wheat market yesterday, as better export sales and the oversold market gave traders a buying signal. After a couple days for selling, funds bought 5k contracts of CBOT wheat which took
the net position to 21k contracts short. If the market doesn’t find supportive news in the near-term, fund selling could pressure contract lows. Global market focus is shifting back to big supplies and slow demand, as analysts expect Australian weather to be conducive to harvest, and yields and quality are improving. The cash market is seeing values improving, as the country is reluctant to offer wheat with strong carries present, which is forcing buyers to pay-up for available nearby bushels. Outside markets look to weigh on grains; USD up 290 points and Crude Oil down 20 points. Look for mixed trade in wheat, as the market is finding a range, but cold temperatures moving through this weekend could have an ill-effect on a wheat crop that is ahead of normal.
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