Wheat Commentary
Dec Chgo Wheat closes 5 ½ cents lower ($4.43 ½), March 4 ¼ cents lower ($4.63 ¾) and July 4 cents lower ($4.88 ¼)
Dec KC Wheat closes 3 ¾ cents lower ($4.42 ¼), March 4 cents lower ($4.59 ¾) and July 3 ¼ cents lower ($4.89)
Weekly Wheat Export Inspections – 464.3 K T. vs. 300-500 K T. expected
Weekly Winter Wheat Progress – % Planted vs. 14% expected vs. % 5-year average
Egypt announces an overnight tender for optional origin wheat
We see yet another challenge of pivotal resistance, $4.50 Dec Chgo, and once again it gets turned away. Due to the wheat market’s inability to follow through on the upside has trading funds re-installing shorts that were covered early mid last week. Demand for US wheat has been no better than routine. The one positive I see out there is that the competitions’ prices have stopped going down. We’ll see who gts involved with Egypt’s overnight tender and go from there.
Not much happens in the world of US cash wheat. Chgo wheat spreads have enjoyed a minor run higher over the past three weeks; they now appear to be running out of steam. KC spreads continue to inch in. The gain over the last two weeks should be measured in 8th’s as it has been so slight.
Chgo Dec wheat has been turned back from the $4.50 level 4 days in a row now. One would think that if we can get a conclusive close above that level fund short covering should step up. Until then the wheat market shall remain a trading range affair. Closes below $4.40 will suggest a challenge of the suggested support in the mid to low $4.30’s.
Daily Support & Resistance for 09/19
Dec Chgo Wheat: $4.35 – $4.50 (?)
Dec KC Wheat: $4.35 – $4.50 (?)
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