The wheat market could not hold onto gains yesterday as the soybean market ran higher on weather concerns, closing down ½ to up ½ cent. Export sales fell short of estimates with reports of 318 TMT sold for 16/17 but shouldn’t be surprising, which was a major decline from very impressive sales the previous week. Cash markets are looking ugly for the low protein stocks that are adding up, with both feed values and SRW replacement values for ords looking very cheap in the market. Egypt’s Ag Ministry reported the rejection of a U.S. wheat shipment due to high ergot levels that were double the allowable level, and this is after the recent official complete adoption of the 0.05% limit on shipments. Look for a higher start for wheat, as corn and soybeans run higher concerns attributed to heat coming late July, but rains are moving through the Midwest into early next week and should buffer major issues.
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