Overnight trading took wheat a couple cents lower, as weekend rains are expected to benefit the dry HRW areas.\\ The market is watching for areas that receive excess rain from this pattern for potential drown-out possibilities, but they will wait for confirmation of issues to trigger a rally. Cash markets continue to see support from the MGEX/KC spread widening, as rail markets build the protein premium back into values. Strength should begin to work into the truck markets, as gulf values are improving also. KC spreads have settled into sideways patterns, with K/N -10 ½ and N/U -14 ¼; traders expect the crop to be in good condition after rains move through and keep stocks adequately accessible for HRW markets. Crude Oil is down over $1/bbl this morning, pressuring other outside markets. Look for wheat to remain in a sideways pattern, with forecasts showing favorable conditions for wheat growth and corn planting in the Midwest.
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