March Chgo Wheat closed 5 ¾ cents higher ($4.86 ½), May 6 ¾ cents higher ($4.91) & July 5 ¼ cents higher ($4.93 ½)
March KC Wheat closed 5 ¼ cents higher ($4.55 ¼), May 5 ¼ cents higher ($4.63 ¼) & July 5 cents higher ($4.73 ½)
USDA Outlook Forum – Wheat 2019/20 – 47.0 million planted acres vs. 47.8 last year vs. 47.2 expected
Weekly Wheat Export Sales (Jan 4th to Feb 14th) – old crop vs. 2.000-3.000 M T. expected – new crop vs. 50-300 K T. expected
Flat price wheat reacts to the China proposal on buying US Ag goods if a deal can be finalized. The recent beating prices have taken had those selling in the hole the past few days buying it back today. Tomorrow the USDA will add a supply-demand table to today’s acreage estimate. I think the bigger number that will attract attention tomorrow will be the export sales “catch-up” report that will total sales from Jan 4th through February 14th. I believe we all realize that the lack of US wheat exports has acted as a major drag on US wheat prices. A healthy looking sales report should allow prices to continue with today’s rebound.
Interior cash wheat prices show little if any changes today. Overall interior HRW prices have been improving; not so much for SRW. Chgo spreads saw March easing while May forward spreads was firming. March easing I believe is a function of 1st notice day next week. KC spreads were fractionally firmer out to the new crop.
Today’s inside day of Wednesday’s trade does not signal the lows are in. A test of Wednesday’s low followed by a higher close would suggest, technically, that we may have gone low enough for now. As of this writing I’m willing to wait and see.
Daily Support & Resistance for 02/22
Mch Chgo Wheat: $4.80 – $4.94 ($5.00)
Mch KC Wheat: $4.50 – $4.65 (?)
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.