Wheat continued the move higher yesterday on buying that is expected to be linked to the fund roll, as volume was up in KC and Chicago on the close. Weekly export inspections fell short of estimates and last week’s total at a meager 260 TMT for the week ending 1/5. HRW was the leader for the week, with top destinations of Indonesia, Brazil and Guatemala. The weather maps for late this week are a little drier than previous models, but still show pretty good coverage of the Plains. Extended forecasts are a bit warmer and wetter than the previous models, as well. There was an export sale of HRS announced yesterday, that will likely lead to buyers getting positions covered and more strength to domestic spring wheat with on-going logistical issues, which should lead to more demand for high protein HRW. Look for wheat to struggle to continue the rally, as corn and soybeans face pressure and traders prepare for Thursday’s USDA report.
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