The wheat market is working on another day of minor gains at the bottom of the recent range, as global oilseeds are running higher. Weather forecasts show chances for a precipitation event midweek for KS and S. NE, followed by colder temperatures that brings concerns of freeze damage, which is probably still a little premature. The CFTC showed that funds are now net long 17k contracts of KC wheat, as the KC/CHGO March spread traded out to 13 cent KC premium as of 11/29. Cash markets held mostly steady through last week, but late trade in the KC spot market saw values soften slightly. We are now in the seasonal weakness in HRW basis, which could see values begin to decline into the rest of the holiday season. With the USD lower, Crude Oil higher and equities higher, outside markets should not deter gains in the grain arena, led by oilseeds.
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