The move higher in wheat was stronger than the change in fund positions would show, as buyers jumped in to push the 3 contract 4-9 higher. Funds reduced the net short in CBOT wheat by 3k contracts to about 128k contracts. There is a proposed elimination of the Russian wheat export tax, and new agencies expect exports to increase by 5 MMT, to 30 MMT on this change. Japan’s Ag Ministry announced yesterday that they will resume buying U.S. white wheat, after finding GMO wheat was not discovered in any previous shipments. Weather over the next week looks to be drier, with average temperatures that will allow row crop to push toward maturity and keep pressure on moves above recent ranges. Outside markets look to support the buying in grains, with USD down 300 points, Crude Oil up 55 points and S&P up 6 points. The buying in grains and oilseeds continues this morning, as shorts get covered near lows.
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