Gains in wheat on Tuesday were driven by a weaker USD and rallying soybean market. Funds continued to liquidate the Chicago short, chipping away 6k contracts on Tuesday, putting the net short at 89k contracts. Export inspections saw a slight improvement last week to 344 TMT, with HRW making up 200 TMT and led by shipments to Nigeria from the Gulf. The spring wheat spot market rolled bids to the May and the MGXH/K spread went crazy, as producers sold into the front-end strength, trading between 6 and 20 cent inverse, before settling at 7 ¾ inverse. Morocco announced a purchase of 360 TMT of US HRW yesterday, which is a bright spot in the current slow export environment due to the increasing flat price. The USD has recovered about half of Tuesday’s losses and Crude Oil has turned lower overnight. Look for wheat to trade quietly lower, taking cues from soybeans and corn this week.
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