The market is slightly higher, following losses to end the week, but soybeans are facing double-digit losses due to forecasts showing rains and temperatures that are not quite as hot this week for the Midwest. The CFTC reported the net short fund position in Chicago wheat at 118k contracts through 7/12, with the record short being 135k contracts. Cash markets are softening further, as buyers have plenty to 11 pro and lower wheat, and the rail market is showing less concern about 12.0 pro. The mill buyers are showing favor to high 12s and above protein levels, so we have seen the premium for 13.0 widened to 60 cents over 12.0 on the KC highside. The futures market has established a sideways pattern over the past two weeks, and we will need to see export sales build, especially for low pro stocks. Look for wheat to hover around unchanged, without much news to trade on, but corn and soybeans will be the wet blanket today.
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