Wheat Report, 04/20/2016

Wednesday, April 20, 2016

Short-covering continued in the wheat market as funds liquidated more of the record short position. Wheat was also supported by the soybean rally and outside markets. Funds have reduced the net short by 21k contracts over the last two sessions, taking the net position back below 100k contracts. Extended weather forecasts look better every day for the 6-14 day period, with cooler temperatures and precipitation chances holding on. Fundamentals do not support the recent rally, so the market could be setting up for a reversal after the fund short-covering ends, with favorable weather conditions for the U.S. and Russian crops and global stocks remain abundant and values are moving lower. Domestic cash values are steady to slightly better, as buyers are showing interest in specific spreaders and quality stocks. Look for short-covering support to continue at a slower rate, with corn and soybeans trading mixed following yesterday’s rally.

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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