July Chgo Wheat closed 7 ¼ cents lower ($4.69 ½), Sept 7 ½ cents lower ($4.83) & Dec 8 cents lower ($5.00 ½)
July KC Wheat closed 11 ¾ cents lower ($4.58), Sept 12 cents lower ($4.75 ½) & Dec 11 ¾ cents lower ($4.99 ½)
Egypt announces an overnight tender for optional origin wheat – overnight Egypt buys 120.0 K T. Russian wheat
The KC market continues to liquidate!! Despite the continued unwinding of long KC/short Chgo spill over selling forces Chgo lower but to a lesser extent. The thought of improving growing conditions with our global competitors crops weigh on the US markets. I thought the offers Russia gave to Egypt over night might be a bit supportive as they were not as low as last week’s Romanian offers but if there was any support from that it did not last very long.
Interior cash wheat markets remain quiet. I don’t see anyone pushing to own cash SRW. Chgo spreads firmed ever so slightly despite the flat price selling. Offers to buy cash HRW are steady but firm but having very little influence on the futures spreads.
Chgo wheat manages to hold last week’s early low but not showing much of a rejection of that low. The KC price action is absolutely horrendous looking. The KC market has fully retraced back to the level the rally started from back in late January. One would think that might offer some support but so far the price action in KC still leaves a lot to be desired. I can’t bring myself to sell current levels but trying to buy the market is pure heroism.
Daily Support & Resistance for 06/27
Sept Chgo Wheat: $4.80 (?) – $4.95
Sept KC Wheat: $4.70 (?) – $4.87
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