Wheat Report, 07/19/2016

Tuesday, July 19, 2016

The wheat market moved higher on Monday due to funds having a near-record net short in Chicago, concerns related to the world crop conditions. Egypt purchased 300 TMT of wheat over the weekend for Aug. 21-30 shipment from Romania and Russia, at an average price of $175/MT C&F, which was slightly above the previous purchase but they bought volume this round. The French crop is the center of concern for the EU crop, as TW is low and yields are reported to be shrinking daily. Winter wheat harvest advanced to 76% complete through the weekend, as the southern tier is mostly complete and the rest of the progress will be NE, SD and toward the PNW. The KC spot rail market is showing how plugged mills are of 11 pro stocks and are not looking for more on the front-end, with similar thoughts of low-12s, while high 12 to 13 pro is still showing favor. Grains have turned lower, led by corn and soybeans seeing better crop conditions and mostly favorable weather.

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