Morning Wheat Report, 02/29/2016

Monday, February 29, 2016


The market is off to a higher start, as February comes to a close. New contract lows in Paris wheat on Friday, shut off the strength for Chicago and KC contracts to end last week. Weather is drawing quite a bit of trader focus recently, as temperatures are above normal and lack of precipitation is increasing dryness. Short-term concern of winterkill is limited, but as more of the U.S. and global crop is drawn out of dormancy, a flash cold snap could have an impact. Cash markets have been flat, and with the roll to the May futures at 10 cents, basis values look ugly in the KC rail market. Outside markets aren’t having a major effect on grains this morning; USD up 165 points, Crude Oil up 44 points and S&P steady. Look for wheat to gain a little momentum, as traders buy cheap values around contract lows.


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