Concern over crop conditions and weather for wheat areas of U.S., Ukraine, India and Morocco led to a short-covering rally on Thursday. KC May was 11 cents higher at $4.66 and Chi May was up 9 ½ cents at $4.59 ¾. Traders are well aware of the huge global stockpile, but seem more interested in the potential production issues that could occur for 16/17 crop. Funds were buyers of about 10k contracts of Chi wheat over the last two sessions, and today looks to reduce the short more. Extended weather for the U.S. Plains shows a continuation of warm temperatures and dry conditions, but low temperatures are also shown above normal. The build-up of concern circulates around a late freeze event domestically and across the globe. A positive jobs number was released this morning, taking equities higher; coupled with small gains in Crude Oil. The wheat market is expected to see continued buying interest on weather concerns and should ignore a stronger USD.
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