Wheat Report, 11/20/2015

Friday, November 20, 2015

A round of fund short-covering pushed through the wheat market yesterday, as better export sales and the oversold market gave traders a buying signal. After a couple days for selling, funds bought 5k contracts of CBOT wheat which took
the net position to 21k contracts short. If the market doesn’t find supportive news in the near-term, fund selling could pressure contract lows. Global market focus is shifting back to big supplies and slow demand, as analysts expect Australian weather to be conducive to harvest, and yields and quality are improving. The cash market is seeing values improving, as the country is reluctant to offer wheat with strong carries present, which is forcing buyers to pay-up for available nearby bushels. Outside markets look to weigh on grains; USD up 290 points and Crude Oil down 20 points. Look for mixed trade in wheat, as the market is finding a range, but cold temperatures moving through this weekend could have an ill-effect on a wheat crop that is ahead of normal.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

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