Pressure was applied to the wheat market overnight, due to better than expected national crop conditions released yesterday afternoon, pushing futures down 5-8 cents. Winter wheat conditions are shown at 59% g/e for the U.S., up 4% from the last Nov. report; with KS 55% g/e, CO 55% g/e, OK 61% g/e and TX 47% g/e. These are 1-2% below last week’s state reports released. Weather forecasts continue to show precipitation in the 6-10 and 11-15 ranges, but the question will be if it happens and how beneficial will it be. KC spreads say to carry the wheat that you can; K/N -11 ¼, N/U -14 ¼ and N/Z -35. Outside markets are higher this morning; USD up 290 points, Crude Oil up 75 points and S&P futures up 3 ¼ points. Look for wheat to be under pressure from the positive crop conditions and the fact that there will be abundant stocks moving into the new marketing year.
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