Wheat Comments, 01/08/2016

Friday, January 8, 2016

Overnight strength keeps the move higher from contract lows going, with buying interest in corn and equity markets reversing the recent implosion. Egypt has adjusted its quality specs to not allow any ergot in wheat imported, which will be difficult for France and Argentina to manage and will likely lose French offers in future tenders. There are still 3 cargoes that are waiting to load at a French port as the shippers wait for letter of credit to arrive from GASC. S. Korean millers bought 83k MT of wheat from U.S. and Canada for April/May delivery overnight, continuing regular business into Asia. Weather forecasts show more normal temperatures and precipitation for the 6-10 and 8-14 day ranges, but that should keep wheat in dormancy and the crop is in good shape on soil moisture. Look for the wheat market to continue the move higher on some technical signals, and equity markets are positive this morning.

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