Sept Chgo Wheat closed 12 ¾ cents lower ($5.08 ¼), Dec 12 ¾ cents lower ($5.16 ½) & March 11 ¼ cents lower ($5.26)
Sept KC Wheat closed 8 ½ cents lower ($4.22 ¼), Dec 8 ½ cents lower ($4.33) & March 7 ¾ cents lower ($4.44 ¾)
Sept Mpls Wheat closed 4 ¾ cents lower ($5.01 ¾), Dec 4 ¼ cents lower ($5.16) & March 4 cents lower ($5.30 ½)
Egypt announces an overnight tender for optional origin wheat – last week they bought 470 K T. – paid $215.40 FOB – $228.50 C&F
US wheat futures continue to move lower prompted by the larger Russia crop size that was announced yesterday by the Ag consultancy IKAR. Adding to the day’s bearishness was the improved ratings for the US spring wheat crop. Technical selling was noted in the Sept Chgo contract when it went through the $5.17 level.
With harvest almost done for the US winter crop interior basis levels for both SRW and HRW are easing as demand remains no big deal. Sept/Dec spreads ran steady in both Chgo and KC and then bear spreading took over going forward.
So how friendly is new contract lows and new contract low closes for KC and Mpls? NOT!! The next support level for Sept Chgo is $5.00 to $4.95. The sharp 2-day sell-off should bring some minor backing and filling overnight as will the announced Egyptian tender. Given the price break that has occurred with both the EU and Russian prices it will be interesting to see what kind of offers Egypt receives.
Daily Support & Resistance – 8/05
Sept Chgo Wheat: $5.00 – $5.16
Sept KC Wheat: $4.17 (?) – $4.30
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