The market has been sliding this week, following the recovery last week, with traders expecting conditions to improve with the rainfall expected for the winter wheat areas. Trading ignored the larger fund short, and it looks like it will increase again in Friday’s report. Overnight trade was steady, on light volume across the grains, but that doesn’t change the current trend that is working toward January lows. Egypt was reported to have rejected at least 7 cargoes of wheat in recent months following new guidelines introduced in January, leading global exporters to add risk premium back into offers. Saudi Arabia purchased 120 TMT for U.S. HRW for this marketing year at $216/MT C&F. Weekly export sales showed 419 TMT for 16/17 and 150 TMT for 17/18, both on the higher end of estimates. The Black Sea crop could face very cold temperatures later this month, so the market will be watching for more news. Look for a quiet start to the day, with opportunity for a little support from exports.
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