The market is off to a better start this morning, with charts showing some support for grains and Crude Oil is trading higher. The global wheat market is busy this week, with Jordan, Algeria, Tunisia and Egypt announcing tenders. The Egypt tender was announced for April 15-25 shipment, so the trade will be watching for results today, and the lowest FOB offer was for U.S. SWW at $189.60/MT. The decline in futures has U.S. wheat prices back near world competitive levels, so every tender that is announced has the market watching to see where U.S. offers fall. With car costs now back below tariff, bids into the Gulf have declined, giving exporters and even better chance to draw some business. At the same time, the interior rail bids have tumbled, which says the rally was probably overdone, but buyers are starting to support these current levels, while shippers are less apt to load spot cars. We should see support to grain prices today, but with the expectation of a Fed rate increase today, that could be pressured late in the session.
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