Wheat Commentary
March Chgo Wheat closes ¼ cent lower ($4.27 ¾), July¼ cent lower ($4.54 ¼) and Dec ¾ cent lower ($4.83)
March KC Wheat closes 1 ¼ cents higher ($4.26 ¾), July 1 ¼ cents higher ($4.57 ¼) and Dec 1 ¼ cents higher ($4.92 ½)
Weekly Wheat Export Sales – old crop 250-550 K T. expected – new crop none expected
Flat price wheat consolidates at/just under its recent two week high. Inter-market spreading lends support as does the weaker looking US Dollar. Questions around the current wintering conditions and its impact on crop development later this spring will dog this market for the next 3 months. Speculative short covering continues to be the best buying support this market has.
Interior cash wheat prices if not steady are firm. Miller demand is the best demand and they are having a hard time sourcing good protein wheat. Number one – there’s not a lot of it around. Number two – elevators that have it won’t let it go because they are making too much $$ on storage or they’ve got the carry locked in and they don’t want to let it go.
Current price levels are about 5-7 cents away from challenging some decent looking resistance. The market has been edging higher for just over 2 weeks now without challenging any type of consolidation type resistance. Will that occur tomorrow, the last day of the year, or will they wait until next week when we still have super cold conditions? If wheat spikes higher tomorrow I’ll be tempted to be a seller next Tuesday morning.
Daily Support & Resistance for 12/29
March Chgo Wheat: $4.22 – $4.32
March KC Wheat: $4.20 – $4.32
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