Morning Wheat Report, 03/04/2016

Friday, March 4, 2016

Concern over crop conditions and weather for wheat areas of U.S., Ukraine, India and Morocco led to a short-covering rally on Thursday. KC May was 11 cents higher at $4.66 and Chi May was up 9 ½ cents at $4.59 ¾. Traders are well aware of the huge global stockpile, but seem more interested in the potential production issues that could occur for 16/17 crop. Funds were buyers of about 10k contracts of Chi wheat over the last two sessions, and today looks to reduce the short more. Extended weather for the U.S. Plains shows a continuation of warm temperatures and dry conditions, but low temperatures are also shown above normal. The build-up of concern circulates around a late freeze event domestically and across the globe. A positive jobs number was released this morning, taking equities higher; coupled with small gains in Crude Oil. The wheat market is expected to see continued buying interest on weather concerns and should ignore a stronger USD.

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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