Wheat Comments, 01/08/2016

Friday, January 08, 2016

Overnight strength keeps the move higher from contract lows going, with buying interest in corn and equity markets reversing the recent implosion. Egypt has adjusted its quality specs to not allow any ergot in wheat imported, which will be difficult for France and Argentina to manage and will likely lose French offers in future tenders. There are still 3 cargoes that are waiting to load at a French port as the shippers wait for letter of credit to arrive from GASC. S. Korean millers bought 83k MT of wheat from U.S. and Canada for April/May delivery overnight, continuing regular business into Asia. Weather forecasts show more normal temperatures and precipitation for the 6-10 and 8-14 day ranges, but that should keep wheat in dormancy and the crop is in good shape on soil moisture. Look for the wheat market to continue the move higher on some technical signals, and equity markets are positive this morning.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial