Chicago wheat found some support at lows yesterday, closing 3 cents higher, while KC and Minneapolis saw slight losses. Funds were buyers of CME wheat yesterday as futures trade around the contract low, reducing the net short by 5k contracts. The French Farm Ministry left 2016 winter wheat plantings unchanged at 5.2 million hectares, up 1% over LY, 4.5% over 5YA and largest area in 80 years. Export sales improved over the previous week to 263 TMT, but the U.S. needs to see inspections pick up over the next couple months. Rumors are floating around that Argentine millers are forced to pay-up to source high quality wheat, which could leave the door open for U.S. HRW moving to S.A. later this year. Bargain-buying near contract lows has the wheat market higher this morning, but fundamentals are not positive, as global stocks are large and weather/crop conditions are good.
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