The market is unfazed by the below-freezing temperatures over the weekend for the winter wheat crop, which shouldn’t be an issue, even for the areas coming out of dormancy. Traders will be watching for stories of adverse effects, but it will be a few weeks before anything is really known. CFTC showed the net short for CBOT wheat was cut to 38k contracts through 2/21, which was a 20k contract swing from daily estimates for the same day. The KC long continues to grow, with the current position of 34k contracts net long. There was an Iraqi tender over the weekend that only saw four offers, as the market was uncertain about terms. Values at the Gulf and PNW have been propped up by increased car costs, but there was a little decline in bids, as the secondary market saw shuttles trade at the bid and also then se bids back down. Look for wheat to start the week on a weaker note, with nothing supportive to trade off of so far.
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