The rally continued on Monday, even after starting lower, as funds continued to cover the short in CBOT. Funds are estimated to have covered about 27k contracts of the CBOT short position, taking the net position to 65k contracts. Weekly export inspections scaled back last week, after an impressive previous week, with only 308 TMT of registrations, and HRW made up 178 TMT and mostly left the TX Gulf. The Aussie wheat crop for 16/17 was estimated at 35.1 MMT yesterday by ABARES, which is 10 MMT above LY and above the 11/12 record. Cash markets domestically are mostly steady, as we saw a little strength in the ill-defined 10.5 pro range, while buyers are becoming stingy with 12 pro values, with an indication that good spreaders, especially to the west, are needed. Grains are off to another lower start, but nothing has really changed, so we’ll have to see if the day session brings strength again.
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