Wheat Commentary

storck

Just My Opinion – Wheat

Wheat Commentary

Sept Chgo wheat closes 8 ¾ cents lower ($4.21 ¾), Dec 2 ¾ cents higher ($4.45 ¾) and March 3 ¾ cents higher ($4.67)

Sept KC Wheat closes 3 ¾ cents higher ($4.23 ¼), Dec 3 ¾ cents higher ($4.48 ¾) and March 3 ¾ cents higher ($4.66 ¼)

Flat price wheat tries to sell off during the Tuesday night session as well as early in the Wednesday session but it gets nowhere. That in itself prompted a return of short covering. It also helped that the Mpls market saw a sharp rally off of its recent lows. Russian prices appear stable for the time being. I know a lot of people don’t like to follow anything Russian but we have to as they are one the primary driving forces in the world wheat market. The recent Bloomberg trader survey is suggesting the US wheat carryout will come down 19 million bu. and the World wheat carryout will come down 400 K T.

Advertised cash wheat prices remain quiet. Higher protein wheat cash prices continue to move higher. The Gulf is looking for HRW as that bid remains firm while the Gulf bids for SRW remain nothing to write home about. Chgo wheat spreads softened noticeably as we finally saw some deliveries against the Sept contract. That set the stage for softer spreads across the Board. Not much happens with KC spreads.

Tuesday night I suggested $4.55 – $4.60 begins some decent looking resistance for both Chgo and KC Dec wheat. That idea remains in play.

Daily Support & Resistance for 09/07

Dec Chgo Wheat: $4.38 – $4.56

Dec KC Wheat: $4.40 – $4.57

 

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.