Wheat Commentary
May Chgo Wheat closes 6 cents lower ($4.54 ¼), July 5 cents lower ($4.71 ½) and Dec 4 ¾ cents lower ($5.09)
May KC Wheat closes 11 cents lower ($4.68 ¼), July 10 ½ cents lower ($4.87 ¾) and Dec 10 ¼ cents lower ($5.29 ¼)
Weekly Wheat Export Inspections – 278.8 K T. vs. 250-500 K T. expected
After the Chinese sanction scare early Friday morning prices were able to recover on drier forecasts for the HRW areas in the central southern US Plains. Weather updates this morning reversed that idea as short term forecasts (this week) suggest some much better potential for moisture for these areas. As far as the upcoming USDA reports are concerned it seems the predominant view is “who cares” since demand for US wheat is paltry at best. Short crops without demand are not that short.
Not much happens with the cash wheat basis. This holds true for the interior as well as for export. Spreads in both KC and Chgo featured some minor easing with the flat price selling.
My outlook for the flat price wheat trade over the next 2 ½ days is no different from what I’m expecting elsewhere in the Ag complex; some short term consolidation.
Daily Support & Resistance for 03/27
July Chgo Wheat: $4.65 – $4.78
July KC Wheat: $4.82 – $4.95
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.