Winter wheat contracts closed ¼ to ½ cent higher, on 6-8 cent ranges on Tuesday, as directionless trade has been the best description this week. The HRW crop is seeing cold, dry conditions across CO, KS and NE, while the northern SRW crop is enjoying a blanket of moisture, as this first major cold blast moves through the Plains and Midwest. Export activity is really the only place to lay focus right now, as interior markets back down ahead of the holidays. Domestic buyers seem to have needs covered, with any remaining applications to finish out the month. We will see values dip as much as they have to, in order to stop movement, although, the spot market has been dead this week already. With flat price remaining low, U.S. wheat should remain competitive, so we’ll watch for other demand the flows our way. Look for wheat to remain below unchanged most of the session, but with the funds this short in Chicago, we may see a little more buying late in the day.
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