Wheat Commentary
March Chgo Wheat closes 6 cents higher ($4.46 ¼), July 6 cents higher ($4.73) and Dec 6 ¾ cents higher ($5.06 ¾)
March KC Wheat closes 7 ¼ cents higher ($4.69), July 8 ½ cents higher ($4.99 ½) and Dec 9 cents higher ($5.33 ¾)
A stabilizing equity market, ongoing concerns over the wintering US HRW crop and a decent amount of World business happening (of which the US is getting not much of) allows Chgo wheat futures erase recent losses that occurred yesterday. KC wheat futures appear primed to vault into new highs above and beyond it early October highs. KC continues to dominate Chgo and now Mpls appears to be showing some get up and go.
Very little goes on in the US cash wheat markets. This holds true for both domestic and export. Chgo spreads chop around almost directionless. KC spreads, trying to look like they had something going yesterday, gave it back today. Overall wheat spreads continue to be sideways.
The technical price action, thought to be a downflag, is trying to spring back to the upside. The KC market is much further along with tis idea as this market appears primed for new highs for the move. Yes, Chgo looks like a downflag but nowhere near in suggesting it is ready to pop higher. I don’t see much influence coming out of Thursday’s Supply-Demand reports.
Daily Support & Resistance for 02/07
March Chgo Wheat: $4.42 – $4.52
March KC Wheat: $4.64 – $4.77 (?)
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