Wheat finished higher on the day but still sharply lower for the month as crop prospects for spring wheat continued to look good this past month and winter wheat damage was not as poor as what trade had initially priced in. Export sales this morning were better than what trade had been expecting which does continue to promote our point of finding better exports at these levels.
On a continuous chart, wheat broke below its long term uptrend that it has traded above since 2006 and we are trading at the lowest levels since July 2010. The last time we had a monthly close at these levels was before the Russia drought of 2010. Since this situation that drastically trimmed world stocks of wheat, we have seen several good seasons that has helped push stocks back to normal to above normal levels and has kept this market in a downtrend since mid-2013…
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