Wheat Report, 01/28/2016

Thursday, January 28, 2016


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.


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