July Chgo Wheat closed 12 ¼ cents lower ($4.77 ¾), Sept 12 cents lower ($4.89 ½) & Dec 12 cents lower ($5.09 ¼)
July KC Wheat closed 16 ½ cents lower ($4.83), Sept 16 cents lower ($4.99) & Dec 15 ½ cents lower ($5.22 ¾)
Egypt announces an overnight tender for optional origin wheat – Overnight Egypt buys 240.0 K T. Romanian wheat
Not to be outdone with the volatility elsewhere within the Ag complex wheat futures see a similar trade but to a much lesser extent. At one time Chgo wheat was down 22 cents or so, saw a midday rally to where losses were only 5 cents but then sagged late. KC wheat continues to be the weak link here. At one time early in the day session they were down nearly 29 cents, rallied to only 10 cents losses and then sagged into the close. Harvesters in Kansas are going at break neck speed as heavy rain is forecasted for later this week. Over the weekend IKAR, the Russian consulting group, suggested winter wheat losses were not as great as originally expected. Ukraine came out with a similar announcement earlier today.
Everything appears to be relatively quiet in the cash wheat markets. Basis for HRW continues to show a firm bias as everyone involved would like to get their hands on the high protein that has been harvested; is being harvested. KC spreads, however, are soft all the way out to July ’19. Not much happens with the cash SRW market. Chgo spreads went mostly unchanged.
Chgo wheat futures continue to advertise a challenge of the April lows; something closer to $4.60. The KC market is already there. It was just 4 days ago the KC/Chgo July spread was knocking at the door of 25 cents over; today we saw that spread challenge 1 cent over. I have to think as we move forward over the near term wheat will continue to be on the short side of the inter-market spreads. It’s a cheap call like the rest of the Ag complex; don’t be surprised to wheat futures trade inside Tuesday’s daily range over the next few days.
Daily Support & Resistance for 06/20
July Chgo Wheat: $4.72 – $4.86
July KC Wheat: $4.74 – $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.