Wheat could not hold onto early gains that were led by row crops, but commercial traders decreased long positions following the gains. Export inspections totaled 625 TMT, with 395 TMT attributed to HRW inspections with destinations including Brazil, Nigeria and Mexico. Russia’s Grain Union expects the wheat crop to reach 69.5 MMT, and total grain output above 114 MMT, exceeding the Ag Ministry’s 110 MMT estimate. Russian grain exports are expected to increase to 38 MMT, including 28 MMT wheat, and experience some storage issues. The German crop is expected to decline from previous estimates, due to heavy rains leading up to and into harvest. KC U/Z spread has settled around -26, after the recent strength following export business, while the Z/H spread works stronger as more demand surfaces. The USD is tumbling this morning, down over 800 points and now below 95. Look for corn and soybeans to attempt to continue gains, while wheat is stuck in a sideways pattern on lack fresh news.
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.