Wheat Commentary


Wheat – Just My Opinion

July Chgo Wheat closed 1 cent higher ($4.86), Sept 1 ½ cents higher ($4.91) & Dec ¾ cent higher ($4.98 ¾)

July KC Wheat closed 3 ¾ cents higher ($4.35), Sept 3 ¾ cents higher ($4.43 ½) & Dec 3 ½ cents higher ($4.56 ½)

July Mpls Wheat closed 4 cents lower ($5.14 ¾), Sept 4 ¾ cents lower ($5.23 ¾) & Dec 4 ¾ cents lower ($5.35)

Despite the idea that global wheat prices are still coming down US wheat futures (Chgo & KC) were able to stand in on Tuesday. Bottom picking in the flat price as well in the inter-market spreads lent support. The recent downturn in the US Dollar helps the competitiveness of US origin against our global competitors. Unfortunately high freight costs out of the US only leave us with our normal/usual customers.

Chart Talk – July KC wheat registers an impressive looking upside reversal in the form of an outside day that featured new lows for the move while closing above the previous day’s high. The July Chgo contract does not look quite as impressive as the recent price action resembles an upflag from the lows we saw last week. It is interesting to note that while KC and Chgo were careening lower over the past few weeks Mpls was trying to stand in. Now that Chgo and KC are trying to stabilize Mpls is showing signs of rolling over. As I mentioned yesterday both Chgo and KC are deserving of a technical bounce; maybe 25 cents of the recent 50 cent break.

Daily Support & Resistance – 6/24

July Chgo Wheat: $4.80 – $4.92

July KC Wheat: $4.30 – $4.41

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.