February is off on a weaker foot, as crude oil is starting the month lower on weak economic data out of China. Fund were buyers on Friday, cutting the net short by 11k contracts, and the CFTC the position decreased for 20k contracts for the week ending 1/26 which was 8k contracts more than expected. Egypt reportedly rejected a 63 TMT shipment of wheat from France due to ergot that had arrived in December, which emphasizes the country’s strict stance on the fungus in shipments. Domestic cash markets remain mostly flat, while buyers tried to end the month on a weaker note. Traders will be watching the snow moving through the Plains and Midwest this week, the major focus will be areas that don’t receive the coverage when the cold temperatures return. Crude Oil is down $1.30 this morning on poor Chinese manufacturing data and a less likely move to support by OPEC. Look for grains to trade lower today, as supportive news is limited to the weaker USD.
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