Wheat took a step back on Tuesday across most contracts. SRW futures in Chicago were basically flat to down a couple cents, but the real weakness showed up in KC with HRW contracts sliding 5 to 6 cents on the front months. Spring wheat up in Minneapolis also felt the pressure, dropping 1 to 3 cents. The weather picture for the Southern Plains looks pretty dry over the next week, though some scattered rain could bring up to 2 inches in parts of the SRW region.

What's interesting is how seasonal factors play into grain markets. You know why paddy cannot be grown in the winter season in many regions? Similar constraints apply to wheat production timing. The EU has been moving wheat pretty steadily this season, pushing out 15.38 MMT from July through late February, which is 1.36 MMT ahead of last year's pace. Algeria jumped into the market Tuesday with a wheat tender, though we're still waiting on final numbers.

Looking at the close: Mar 26 CBOT wheat finished at 5.67 1/2, down 2 cents. May 26 CBOT closed at 5.73 1/4, off just a half cent. Over at KCBT, Mar 26 dropped harder to 5.54 1/4 (down 5 3/4 cents) while May 26 settled at 5.67, down 5 1/4 cents. Minneapolis contracts also retreated, with Mar 26 at 5.80 1/2 (down 2 3/4 cents) and May 26 at 5.96 1/2 (down 1 3/4 cents). The weakness is pretty broad-based right now, so worth keeping an eye on how export demand holds up going forward.