The wheat market was poised to trade lower on Monday, ignoring weaker USD and good export inspections, to instead have favorable growing conditions take prices lower. Export inspections totaled 672 TMT last week, an 11-week high, made up of 299 TMT HRW, 241 TMT HRS, and 104 SRW. Funds added to the net short on CBOT wheat, as selling increased the position by 7k contracts. Weather forecasts are slightly warmer and drier through the 8-14 day range, but there is still precipitation in the 8-14 day map. Winter wheat conditions improved by 1% last week to 54% g/e; with KS, TX, & NE increasing, while OK, & CO declined 1-2%. Rail bids for 12 pro have improved over the last week, but still weak compared to truck bids. It gets ugly quick from there, as cars below 11.5 pro have struggled to build any strength. Look for wheat to see a slight recovery after yesterday’s losses, as USD continues weaker, but there is little major support at this point.
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