KC wheat added some weather risk premium due to the dry, warm conditions that are taking the crop out of dormancy about a month early. The CFTC showed the net fund position was 7k contracts shorter than the daily estimates showed, so there is a little buying in the market this morning. Egypt bought 240 TMT of wheat for March 15-25 shipment, 60k French and 180k Russian origin, at an average price of $193.91/MT C&F. There has been about $7/MT of risk premium added to offers, due to ergot policy and line of credit concerns. Weekly export data showed a 30 TMT sale of spring wheat to Egypt last week, which was the first sale since 2010. Outside markets are higher; Crude Oil up 185 points, S&P up 20 points and USD up 925 points, although that isn’t expected to have the normal negative impact. Look for wheat to follow corn and soybeans higher to start the week.
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