Wheat Commentary
Sept Chgo wheat closes 13 ¼ cents lower ($4.61 ¼), Dec 12 cents lower ($4.87 ¾) and March 11 ¼ cents lower ($5.09 ½)
Sept KC Wheat closes 9 ½ cents lower ($4.65 ¼), Dec 9 ¼ cents lower ($4.92 ¾) and March 9 ¼ cents lower ($5.10 ½)
In the early going Monday night, early Tuesday morning the wheat market tried to stand with just minor losses. Inter-market spreading coupled with continued reductions in the spring wheat ratings were the primary supporting issues. As the day went on the wheat market could not overcome the spillover effect from the lower corn and soy markets. The eventual outcome was new lows; new low closes for the KC and Chgo markets. Simply put – the liquidation that started on July 12th continues.
Interior cash wheat markets, both HRW and SRW, remain quiet. The export market for HRW is maintaining its recent soft look. The export market for SRW doesn’t do much but is trying to maintain its recent minor improvement. Chgo spreads are now back on their lows that was made last week. KC spreads continue to inch wider (same story different day)
I give up as this current liquidation run has gone deeper and faster vs. my original thoughts. The price action is terrible. Each time I think we’re trying to show signs of support the market fails after 2 days. I’ll be honest; the word “clueless” comes to mind.
Daily Support & Resistance for 08/02
Sept Chgo Wheat: $4.52 – $4.70
Sept KC Wheat: $4.57 – $4.72
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