The wheat market continued lower overnight, following the sell-off on Friday, but the intensity of the weakness has slowed. Funds reduced the net short in CBOT wheat by 5k contracts more the estimates expected, CBOT down 26k contracts for the week ending 4/19 and KC down 7k contracts. Weather maps show good precipitation chances this week through the 11-15 day period, so fundamental pressure will likely keep the market quiet. Traders will be watching the crop conditions reports this afternoon to see if recent rain has had the benefit the market expects. The USDA attache in Russia estimated the 16/17 wheat crop at 58.0 MMT, down 3 MMT from 15/16 but above the 5-year average. Rail markets were stronger last week, on interest to cover final old crop needs, but the truck markets are yet to see the same benefit, with limited export demand. Look for lower trade for wheat on expectations of rain in the forecast, but corn is getting some support on a possible export to Brazil.
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