July Chgo Wheat closed ½ cent lower ($4.89 ½), Sept 1 ¼ cents higher ($4.93 ¼) & Dec 1 ¼ cents higher ($5.01)
July KC Wheat closed 5 ½ cents higher (4.32 ¾), Sept 4 ½ cents higher ($4.38 ½) & Dec 4 ¾ cents higher ($4.51 ½)
July Mpls Wheat closed 3 ¼ cents higher ($4.99), Sept 2 ½ cents higher ($5.12 ¾) & Dec 1 ¾ cents higher ($5.25 ½)
Weekly Wheat Export Inspections – 326.4 K T. vs. 450-650 K T. expected
Egypt announces an overnight tender for optional origin wheat
USDA says US Winter Wheat Crop now rated 51% GE (-1%) vs. 52% expected vs. 64% year ago – Harvested – 56% vs. 56% expected vs. 55% 5-year average
USDA says US Spring Wheat Crop now rated 70% GE (+1%) vs. 70% expected vs. 78% year ago – Headed – 63% vs. 68% 5-year average
It was a mixed to higher day for the US wheat futures’ markets. It seemed like the majority of the trade was inter-market spreading with the Chgo market on the short side. Harvest is just getting underway in the EU and the Black Sea. The overnight Egyptian tender should give us an idea of just how aggressive the World’s exporters want to get. If the US Dollar continues to sell off it will work to offset the high freight out of the US that keeps US origin from being competitive in many areas.
The interior SRW cash market is firm while the interior HRW cash market is soft. The Gulf markets for both varieties run unchanged. Chgo spreads, Sept forward, were pretty flat as were the KC spreads for the same time frames.
Chgo wheat charts are taking on a downflagging appearance. Good looking support for Sept Chgo is $4.85 on down. Conclusive closes above $5.00 should attract some new buying. The Sept KC chart is trying to advertise a possible bottom may be in the making. Closes below $4.30 won’t be taken too well from those that are trying to bullish while closes above $4.45 or so should be well received.
Daily Support & Resistance – 7/07
Sept Chgo Wheat: $4.85 – $5.00 (?)
Sept KC Wheat: $4.30 – $4.50
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.