Another round of fund buying took CBOT wheat 5 cents higher and KC 3 cents higher. Funds have reduced the net short by about 10k contracts in the last two sessions. They warm temperatures over the next couple weeks will avoid winterkill, but similar years in the past have seen a round of frigid temperatures later in the growing season. Strategie Grains increased its EU 16/17 soft wheat export estimate by 1.7 MMT, stating they feel Black Sea competition would be lower, also showing ending stocks lower than in 15/16. Outside markets have supported grains in recent sessions, as Crude Oil and equities have moved higher. Crude up 70 points and S&P futures up 5.5 points, while the USD has been range-bound recently. Grains were a little weaker overnight, although KC is just above unchanged, trading narrow ranges after yesterday’s gains, and traders look for a direction for today’s trading.
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