Wheat is beginning the week lower, as the December contract could not reach Friday’s close overnight. Forecasts show precipitation moving through the Plains this week, with colder temperatures setting in for W. KS. The 6-10 day range shows below normal temperatures and slightly above normal precipitation for the central and northern plains, so there should be some more relief for crop. CFTC showed funds took out more of the CBOT wheat short than expected through last Tuesday, leaving the net short at 16k contracts on 11/3. The nearby cash markets are stronger, as mills and the gulf perked up to cover some front-end needs. The USD remains very strong, up slightly this morning, keeping pressure on chances for increases in the export program. Look for the wheat market to maintain the lower trend, without support from other markets or a round of flash interest in the cash market.
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