The wheat market lost momentum yesterday, ending the recent rally as Russian news of possible removal of the export tax weighed heavily on the market. Overnight trade was about a penny weaker in KC and Chicago, with weather concerns generally light for the U.S. and global crop and a lack of supportive news in the market. Spreads have weakened in KC, as nearby demand has been a little softer, with Mar/May trading out to -10 ¾ yesterday, but settling at -10 ½. The fireworks in gulf values have quieted, as January demand appears to be covered, but February bid/ask is now +106/+110. Outside markets are mixed again this morning; USD down 150 points, Crude Oil up 65 points and S&P futures up 1.5 points. Look for wheat to hover around unchanged today, as traders watch for any signs cold damage in the U.S. or Black Sea as a colder pattern follows this weekend’s warm-up.
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.