The wheat market is off to a firmer start to the week, due to short covering following a large increase to the fund short by the CFTC, even though good rains did move through over the weekend. Friday’s CFTC COT report showed funds added about 45k contracts to the net short through 4/12, while daily estimates only expected 11k contracts added. Extended forecasts following the weekend rains are drier through the 6-10 day range for much of the S. Plains, but maps show better chances again 2 weeks out. Cash markets are firmer with mills attempting to cover nearby needs, as well as, make a plan for the new crop needs. The MGX/KC spread has narrowed a couple cents over the last few sessions, but current levels still should see high protein HRW replacing HRS in grinds. Look for wheat to trade slightly high on fund buying and support from stronger soybeans, but fundamentals are little changed for wheat.
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