The wheat market benefitted from stronger corn and soybean trading yesterday, with KC and CBOT closing 7-9 cents higher. Funds have reduced the net short by 11k contracts over the last two sessions in Chicago. Precipitation is still expected this weekend and into early next week, while latest forecasts are reducing chances for the widespread rains in the 6-10 and 8-14 ranges for KS and north. Export sales were better than the previous week at 124 TMT for 15/16 and 211 TMT for 16/17, but that is not a supportive report for the market. There was a CCC tender to Ethiopia reported yesterday afternoon of a combo cargo of HRW/milo out of the gulf. The Minnie/KC spread blew out to 72 cents yesterday during the rally, which has boosted HRW basis over the last few days as mills look to replace some HRS with high pro HRW nearby. Look for wheat to trade both sides of unchanged, as the market digests the rally and fundaments don’t support an extended move higher.
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