March Chgo Wheat closed 2 ¼ cents higher ($5.22 ¼), May 4 ¼ cents higher ($5.26) & July 4 ½ cents higher ($5.26 ½)
March KC Wheat closed 2 cents higher ($4.94), May 3 ½ cents higher ($5.00 ½) & July 3 ¼ cents higher ($5.07)
Weekly Wheat Export Sales for week ending January 3rd – vs. 200-500 K T. expected
The recent intra-market bull spreading takes a breather in Chgo and KC. Bull spreads are still working in Mpls at least in the current crop year. Old crop Mpls loses noticeably to its new crop. Flat price Mpls was the upside leader on Wednesday as it registered its highest price dating back to December 18th. Unfortunately the Mpls close was not as robust looking as it closed back in its recent trading range. The flat price trade in both Chgo and KC was a grinder with a slightly higher bias; not enough to convince me that something of major magnitude is happening here.
Interior cash wheat prices ran steady on the day but with a slightly firm bias. I’m told its mostly due to a lack of producer selling. Export prices for the varieties continue to show a steady to firm bias as well. Spreads in both KC and Chgo took a breather today vs. the recent firmness.
Trying to move higher but lacking conviction. Chgo continues to be a trading range affair. KC is similar that it too is a trading range affair but not as firm looking vs. Chgo. The trade wants to talk about better business ahead but so far I’m not seeing it. Weekly export sales are out in the morning but as of January 3rd. It’s going to have to be a big number to sway this market appreciably higher. As of this writing I’m content to fade short term inter-day extremes for short term trading opportunities.
Daily Support & Resistance for 02/14
Mch Chgo Wheat: $5.14 – $5.29
Mch KC Wheat: $4.88 – $4.98
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.