Wheat Report, 02/17/2016

Wednesday, February 17, 2016

The short-covering rally yesterday took wheat 6 cents higher, following the large short fund positions. Weekly export inspections were 384 TMT for all wheat, a decline from LW and LY. All wheat is 2% behind the pace to reach the USDA estimate mainly due to HRS trailing 7% behind pace, but HRW and SRW are 2% ahead of pace. Egypt continues to struggle to get offers that they consider tradeable on tenders for March shipment, due to concerns over ergot policy. There was an 8 TMT cargo of Canadian spring wheat that was rejected yesterday due to ergot, it was reportedly rejected twice by quarantine authorities. U.S. cash markets started the shortened week on a softer note, as buyers are not scrambling for coverage and futures were moving higher. USD is up 175 points, Crude Oil is up 77 points and S&P futures are up 14.50 points. Look for a slight correction after yesterday’s rally, but fundamentals are not present to keep the move going.

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.

Market Intelligence Free Trial

Meet the Team

Kansas City, MO
1251 NW Briarcliff Parkway
Suite 800
Kansas City, MO 64116
Tel:+1 (816) 410-5079



Our privacy policy has changed. View our privacy policy to learn more.