Wheat Report, 03/21/2016

Monday, March 21, 2016

Concerns about cold temperatures in the southern Plains has the wheat market higher to start the week. Low temperatures dipped lower than was expected and stayed for a longer duration than traders expected, and buying has resumed. This could also spark an interest for bids to firm up in the cash markets for new crop periods. Basis has been soft with the huge stocks the U.S. and world are sitting on, so opportunities will be short-lived on these concerns. Net fund positions reported by the CFTC on Friday for Chicago wheat showed a 19k contract smaller short position than daily estimates were indicating. Fundamental action of cold temperatures has, at least, delayed another increase in short positions, so the market will be watching for the length of buying interest on conditions. Outside markets are quiet, USD up 35 points, Crude Oil up 20 points and S&P down 3 points. Look for a round of strength today, but ideas of the weather impact could change quickly.

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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