Wheat Commentary
March Chgo Wheat closes 3 ¾ cents higher ($4.63 ¼), July 3 ¾ cents higher ($4.91 ¼) and Dec 3 ¼ cents higher ($5.29)
March KC Wheat closes 11 ¼ cents higher ($4.89), July 10 ¾ cents higher ($5.22 ½) and Dec 8 ¾ cents higher ($5.59)
Ongoing weather concerns for the wintering wheat in the US (too dry), Black Sea and Eastern Europe (too cold) has KC and Chgo wheat futures furthering the recent rally. Adding to the day’s strength for the KC market was further downgrades to the wintering wheat in the central southern US Plains.
Interior cash prices for wheat remain quiet. Export prices have a bit of strength to them due logistical problems as well as slow cash selling. Elevators that own wheat don’t want to let it go given the storage income they are making. Spreads continue to do very little while staying fairly wide.
IN KC the specs are getting longer while in Chgo the specs continue to cover shorts. Since May KC wheat has closed above the $5.00 level prices are now looking at something towards the $5.15-$5.20 level. May Chgo has yet to eclipse the $4.80 level but once it does I have think the spec short will pick up the pace of his short covering. Once this is done May Chgo wheat prices will be looking at the September interim high of $4.95.
Daily Support & Resistance for 02/28
May Chgo Wheat: $4.70 – $4.86 (?)
May KC Wheat: $4.95 – ???
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