Sept Chgo Wheat closed 4 cents higher ($4.95), Dec 4 cents higher ($5.03 ¾) & March 3 ½ cents higher ($5.10 ¾)
Sept KC Wheat closed 2 ¾ cents higher ($4.16 ¾), Dec 2 ¼ cents higher ($4.28 ¼) & March 1 ½ cents higher ($4.38 ½)
Sept Mpls Wheat closed 2 cents higher ($4.92 ¾), Dec 1 ¾ cents higher ($5.08 ¾) & March 1 ½ cents higher ($5.23)
I did not see much of a feature to today’s wheat trade other than some modest short covering today ahead of tomorrow’s USDA production/supply-demand report. The overnight Egyptian tender did not offer much as they only took 120 K T. vs. recent purchases of 410 K T. and 470 K T. at higher prices. Today’s prices were in line with what they paid on July 7th. If one looks at the Chgo Sept wheat chart we are back to the level seen on July 7th.
Expected USDA All Wheat production – 1.832 billion bu. vs. 1.824 last month
Expected USDA Winter Wheat production – 1.216 billion bu. vs. 1.218 last month
Expected USDA Spring Wheat production – 560 million bu. vs. 550 last month
Expected USDA wheat carryout – 946 million bu. vs. 942 last month
Expected USDA World new crop wheat carryout – 313.84 M T. vs. 314.84 last month
Expected USDA World old crop wheat carryout – 296.55 M T. vs. 297.12 last month.
Since it is my opinion that US wheat futures are a follower of the overseas markets the numbers that everyone will be watching for are is the global data. In this case the trade will be watching Russian production vs. EU production.
Daily Support & Resistance – 8/12
Sept Chgo Wheat: $4.85 – $5.05
Sept KC Wheat: $4.08 – $4.26
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.