CFTC showed the net fund short position was 14k contracts bigger than the daily estimates pegged through 2/9 on Friday. Traders took this opportunity to cover some short positions overnight, but the move will be limited by the weak fundamentals in the wheat. Egypt purchased 60 TMT of wheat for March 10-20 shipment on Friday from Romania at $191/MT C&F. Interest remained small on this tender, and GASC proceeded to issue another tender for the same shipment after the close on Friday. The Black Sea crop is seeing snow melting, which isn’t a major issue except that the pooling water is freezing at night and potentially causing issues due to the ice. The USD is pushing higher this morning, as it tries to regroup from the plummet early this month, while equities are stronger as well. Look for grains to get a round of short-covering support from the larger than expected fund shorts, but be ready to settle back into recent ranges after positions are shuffled.
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