The wheat market could not fight through weakness from the continued collapse in world equity markets, closing 1-5 cents lower. Funds sold 2k contracts on Wednesday, taking the net short to 80k contracts. Egypt’s GASC is tendering for wheat for Feb. 20-Mar. 1 shipment, with the lowest offer from France at $181.78/MT FOB. The number of offers was much reduced this round, which could be attributed to the strict ergot limits. The International Grains Council raised world wheat production from 726 MMT to 731 MMT for 15/16. KC March has bounced between the 20-day and 50-day moving averages the last four sessions, today that’s between $4.68 and $4.73 ¾. Export sales are delayed until tomorrow morning, due to the holiday. Outside markets are more subdued this morning, with equities slightly higher, crude oil slightly lower, but USD is up over 500bp. Look for the market to move around unchanged today, as the fund short is still large, but other news remains light.
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