Wheat Report, 01/18/2017

Wednesday, January 18, 2017

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.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial

Meet the Team

Kansas City, MO
1251 NW Briarcliff Parkway
Suite 800
Kansas City, MO 64116
Tel:+1 (816) 410-5079



Our privacy policy has changed. View our privacy policy to learn more.