Wheat Report, 08/01/2016

Monday, August 01, 2016

The market is off to a slightly higher start to the week and month, as light volume overnight has all three contracts up 1-2 cents, with some reaction coming from another larger fund short. The CFTC showed that funds are 131k contracts net short in Chicago wheat, which is 14k more contracts that daily estimates showed for 7/26. GMO wheat made headlines again on Friday, as reports surfaced that there were a few plants of volunteer SWW found in a non-production field in Washington state that contained a strain of glyphosate resistance, although, there is no evidence that any made it into commercial supplies. Cash rail bids felt somewhat supported going into month-end inventory valuations, so we are likely to see some pressure this week. The USD is 140 points higher and Crude Oil is 50 points lower, but equities are stronger this morning. Look for wheat to find some buying interest, but corn and soybeans are under pressure from favorable forecasts and outside pressure.

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