Wheat Report, 03/21/2016

Monday, March 21, 2016

Concerns about cold temperatures in the southern Plains has the wheat market higher to start the week. Low temperatures dipped lower than was expected and stayed for a longer duration than traders expected, and buying has resumed. This could also spark an interest for bids to firm up in the cash markets for new crop periods. Basis has been soft with the huge stocks the U.S. and world are sitting on, so opportunities will be short-lived on these concerns. Net fund positions reported by the CFTC on Friday for Chicago wheat showed a 19k contract smaller short position than daily estimates were indicating. Fundamental action of cold temperatures has, at least, delayed another increase in short positions, so the market will be watching for the length of buying interest on conditions. Outside markets are quiet, USD up 35 points, Crude Oil up 20 points and S&P down 3 points. Look for a round of strength today, but ideas of the weather impact could change quickly.

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