Weekend Wheat Update:

• Wheat futures rallied between 9 and 14 cents on short covering with London and Paris markets also higher (London lower on the week, Paris higher on the week – currency).

• Some winterkill damage is suspected across portions of Nebraska, where snow cover is lacking and where sub-zero overnight lows were recorded.

• Fundamentally, huge old crop supplies remain the dominant market driver.

• It should be noted that French cash prices have posted new marketing year lows this week, as too much supply is chasing far too little demand.

• The following graphic also displays Russian domestic prices in US dollars, and notice that despite being priced well above last year in rubles, the spot market there is quoted at a price equivalent to $4.75-4.80/Bu, which will keep Black Sea highly competitive once the tariff is lifted beyond May/June.

• Better snow cover will be established across the Central US within the next 3-4 days.

• Normal precipitation is projected across the EU, Black Sea and China into mid–March.

• The need to compete with other world origins will likely limit rallies to short covering.