Wheat Commentary
Sept Chgo wheat closes ¾ cent lower ($5.03), Dec unchanged ($5.26 ¾) and March½ cent higher ($5.46 ½)
Sept KC Wheat closes 2 ½ cents lower ($5.00 ¼), Dec 2 ½ cents lower ($5.26 ¾) and March 2 cents lower ($5.43½)
Weekly Wheat Export Sales – old crop vs. 250-450 K T. expected – new crop vs. none expected
Rain moves through N. Dakota, northern S. Dakota and into Minnesota. This event has the Mpls market selling off 14 cents higher on the day to 10 cents lower on the day finishing 5 cents lower on the day. This price action squelched any attempt Chgo and KC trying to rally with the corn and soybean markets. The bottom line is that KC and Chgo wheat markets continue to be in a liquidation mode.
Interior cash wheat markets continue to be quiet. This holds true for the Gulf as well. Chgo spreads softened some from Tuesday’s strengthening. KC spreads continue to be wide and inching wider.
As much as I would like to say KC and Chgo wheat are getting close to some reasonable support the price action remains wanting. Prices for Chgo wheat are within 10 cents or so of what were considered breakout levels in late June. KC prices are at that level. On Monday night I talked about not wanting to be short at current levels – the market rallied the following day only to fail. We are at that level again if not lower. I guess we’ll have to try it again with anything lower tonight.
Daily Support & Resistance for 07/20
Sept Chgo Wheat: $4.95 – $5.20
Sept KC Wheat: $4.95 – $5.20
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