Market Perspective

Wheat markets continue to wander in their winter doldrums. The futures are trying to find a bottom but the commodity funds continue to press the short side with speculative funds now holding close to a 500 million bu net short. On the bear side, the last USDA Crop Report showed 60 million bu decrease in wheat feed use compared to the December report. This more than made up for the 25 million bu increase in wheat exports resulting in a 33 million bu increase in U.S. ending stocks for wheat. World wheat carryovers were also increased 2 million metric tons from the previous report. In addition, I...