The market is off to a higher start, as February comes to a close. New contract lows in Paris wheat on Friday, shut off the strength for Chicago and KC contracts to end last week. Weather is drawing quite a bit of trader focus recently, as temperatures are above normal and lack of precipitation is increasing dryness. Short-term concern of winterkill is limited, but as more of the U.S. and global crop is drawn out of dormancy, a flash cold snap could have an impact. Cash markets have been flat, and with the roll to the May futures at 10 cents, basis values look ugly in the KC rail market. Outside markets aren’t having a major effect on grains this morning; USD up 165 points, Crude Oil up 44 points and S&P steady. Look for wheat to gain a little momentum, as traders buy cheap values around contract lows.
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.