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Alpari Grain Outlook 12/28

Wednesday gave us our holiday two day delayed weekly export inspections report. Remember, the inspection report and our weekly export sales report is our link to demand for grains. Until the next crop report comes in next fall and with corn and bean ending stocks inventories historically tight, the market uses these reports as a price rationing cage.

Last week's short covering rally kept Importers at bay. Wheat inspected for near-term export was 15.1 million bushels (mb), down from 16.6 the week prior. We need 28 mb or more weekly to be bullish. Thursdays weekly export sales report, a gauge of longerterm demand came in at 1.009 million metric tons (mmt) up 55% from the week prior, thanks to the 450 trillion metric tons (tmt) that Egypt bought. That's the second time in three weeks that the world's largest monthly wheat buyer has bought US wheat. Is it a signal a change in demand is beginning, making the US the world's primary port of origin for wheat or just an aberration?

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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