Wheat Report, 01/04/2016

Monday, January 04, 2016

The wheat market is starting 2016 on a weaker note, as sideways action during the holiday weeks on thin volumes
has turned lower on lack of fundamental support. Traders mostly ignored poor HRW export sales on Thursday, but the market is taking note this morning. Precipitation is expected to move into the eastern Plains and Midwest later this week, but a drier pattern will follow in the 6-10 day range, allowing more drying to occur. Temperatures are cooler, but the threat of winterkill remains low for the U.S. crop. Ukraine and Russia did experience some winterkill
over the weekend, as snow cover was not as good as they expected, but they are a long way from spring. Outside
markets will have a big role in trading direction today, as the Chinese stock market imploded overnight. Soybeans are the market leader to the downside, but KC wheat is following closely behind.

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