Dec Chgo Wheat closes 3 ½ cents lower ($3.80 ½), March 3 cents lower ($4.16 ½) and July 3 ¾ cents higher ($4.56)
Dec KC Wheat closes ¼ cent higher ($4.11 ½), March 1 cent higher ($4.30 ½) and July ½ cent higher ($4.53)
Weekly Wheat Export Sales – old crop vs. 300500 K T. expected – new crop vs. none expected
The lack of deliveries against the Chgo contract (only 3) tries to lend support early but it goes for naught as the sharply higher US dollar offsets. The KC contract stays under pressure from its
big deliveries as well as the strength in the US Dollar. The bottom line here is that Chgo wheat prices and now KC wheat prices are in new contract low ground. How good can that be going forward?
Interior cash prices for SRW continue to be a big nothing. The export market for SRW is steady at best. The Dec spreads firmed from the light delivery total while the March forward spreads were soft. The interior cash market for HRW stays firm yet the export market stumbles. Spreads in KC (with the exception of the Dec being fractionally firmer) ran mostly steady not far from their recent lows.
Trading range ideas are now a thing of the past as we are looking at new contract lows in the Chgo and KC markets. We’re not oversold so there is room to move lower. Chgo weekly charts show some minor support at $3.75 (nearby contract). The KC weekly chart is similar as it shows support about another 5 cents lower basis the nearby.
Daily Support & Resistance March Chgo Wheat: $3.97 – $4.09 March KC Wheat: $4.04 – $4.17
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