March wheat opened 6 cents lower on the session at 852 3/4 and established an early range of 851 to 873 1/2. The knee-jerk reaction to the news of an interest rate hike in China was to see lower trade early in the session. In addition, talk of some moisture for dry crops in the US and China added to the long liquidation trend early in the day. The ability of the equity markets to hold without much downside reaction plus higher trade in metals and a sharp drop in the US dollar may have helped give the market a boost to trade sharply higher on the session into the mid-day. Jordan bought 100,000 tonnes of US wheat this morning which added to the bullish tone after the weaker opening. Traders see a slight decline in ending stocks for the USDA supply/demand update for tomorrow morning and this may have added to the positive tone. Continued strong and urgent demand from Middle East and North Africa countries helped to support. The rally pushed new crop July wheat to a new high for the move and then another burst of buying into the mid-session pushed March wheat over the February 3rd peak.
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