Wheat Commentary
Sept Chgo Wheat expires 7 ½ cents higher ($4.28 ¼), Dec closes ¼ cent lower ($4.43) and March¼ cent lower ($4.62 ½)
Sept KC Wheat expires 2 ½ cents higher ($4.20 ¾), Dec closes 2 ¼ cents lower ($4.42) and March 2 ½ cents lower ($4.59 ¼)
Weekly Wheat Export Sales – 316.7 K T. old crop vs. 350-550 K T. expected – no new crop vs. none expected
Flat price wheat, both Dec Chgo and KC, attack the $4.50 level and once again gets repelled back. It look like some the selling, defensive price action, came from the Mpls market. Mpls wheat has been in a minor consolidation mode for the past number of days; today’s price action suggests the liquidation from this summer’s rally has not yet ended. Weekly export sales for US wheat were deemed nothing special; in fact a bit disappointing.
A lack of farmer movement has some selected locations for both SRW and HRW poking their noses up looking for quality wheat. Not much happens at the Gulf for SRW while bids for HRW continue to be firm. Chgo spreads were quiet on Thursday as they held on to recent advances. Spreads in KC inch fractionally tighter.
Conclusive price action above the $4.50 levels (both Dec Chgo and KC) continues to be viewed as initial upside pivot points. The downside is the lows we saw back of Tuesday after the USDA report.
Daily Support & Resistance for 09/15
Dec Chgo Wheat: $4.35 – $4.50 (?)
Dec KC Wheat: $4.35 – $4.50 (?)
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