Wheat Report, 05/04/2016

Wednesday, May 04, 2016

Fund selling was triggered yesterday when the USD weakness turned to strength and pressured grains and oilseeds. Managed money funds took the net CME wheat short back out to about 75k contracts, adding 9k contracts on Tuesday. The Wheat Quality Council KS wheat tour kicked off yesterday and found better yield estimates than last year but saw diseases present. The first-day yield estimate was 47.2 bpa for the route across NC KS, up from 34.3 bpa last year and 41.2 bpa 5YA. The groups will move through western and southern KS today and wrap up the tour tomorrow afternoon. Informa estimates the U.S. winter wheat production at 1.405 BB, up from 1.377 BB previously following the good spring growing conditions. Rail markets are holding strength, as the MGX/KC spreads continue to widen and now showing 81 cents on the N/N. The wheat market is steady this morning, following the double-digit losses yesterday and little new news to drive the market today

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