Wheat Report, 01/03/2017

Tuesday, January 3, 2017

Wheat made a late-session push higher to close 2016 on a positive note, as funds bought wheat and the market saw good export sales reported for the previous week. Overnight trade to start 2017 was mostly above unchanged, but the range was been within 2 cents either side of unchanged. Weather forecasts show a colder stretch this week, but should not prove detrimental to the dormant crop, even without snow cover as protection. Looking at the export market, Jordan passed on its milling wheat tender, and Algeria issued a tender today for March shipment. The U.S. market needs to see more exports booked and/or wheat work into the feed ration to stocks down after the record crop, as KC futures lost 50 during 2016. Cash markets typically see the holiday lull continue into January, but this year it was more of a steadying in Dec, do let’s see what January brings. Look for a slightly better start for wheat, but the soaring USD, up 1,100 points, could limit upward momentum.

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