The move higher continued yesterday with KC and Chicago closing up 1-3 on continued fund buying, likely due to concerns about quality. Funds have now reduced the Chicago net short position to about 71k contracts through yesterday’s trade. The warm and dry weather moving through the Plains should help the crop reach maturity across Kansas, as harvest is expected to be widespread in the next 10-14 days. The Kansas harvest is getting underway this week in SC areas, with good quality and yields reported, but uncertainty about early protein readings holding up. The Russian consultancy IKAR raised their production estimate by 1 MMT to 64.5 MMT, but warned of concerns of low protein due to excess rains in southern areas. South Korea purchased Oct ship feed wheat at a cheaper value than a recent corn trade, which could be an indication of what is to come in more global markets. Look for wheat to start slightly higher, as soybeans take the lead higher and lead grains to continue the rally.
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