Concerns over early warm weather and dry conditions led to a continuation of short-covering on Thursday. Funds have reduced the net short CME wheat position by 14k contract since Monday and another 10k contracts since 3/2. It should be interesting what the CFTC COT report shows this afternoon through 3/8, but the bigger story will be told next Friday. There have been reports of wheat heading in S. Central Texas this week, and reports are circulating about rust in TX, OK, and KS. Temperatures are expected to cool down for the 6-10 and 8-14 day ranges, which could leave the crop vulnerable to damage if temperatures drop below freezing. Outside markets are higher this morning; USD up 490 points, Crude Oil up 60 points and S&P up 15 points. Look for wheat to try to stay above unchanged today, as crop concerns from weather will take much of the traders’ focus.
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