Sept Chgo Wheat closed 5 ½ cents higher ($4.96 ¾), Dec 6 ½ cents higher ($5.06 ½) & March 6 ¼ cents higher ($5.13 ½)
Sept KC Wheat closed 7 ¼ cents higher ($4.25), Dec 7 cents higher ($4.36) & March 6 ¾ cents higher ($4.45 ½)
Sept Mpls Wheat closed 4 ¾ cents higher ($4.97), Dec 4 cents higher ($5.11) & March 2 ¾ cents higher ($5.23 ½)
Weekly Wheat Export Sales – 367.9 K T. old crop vs. 250-800 K T. expected – no new crop vs. none expected
Egypt announces another overnight tender for optional origin wheat – Egypt buys 415 K T. Russian origin – paid slightly more ($1-$2) vs. the 120 K T. they bought earlier this week.
Flat price wheat manages to bounce a bit on Thursday mostly from strength seen elsewhere in the Ag complex. Weekly export sales were nothing special. The Egyptian tender highlighted the aggressive selling stance from the Russians. Other than that I did not see a whole lot. If our overseas competition continue to be aggressive sellers US wheat futures are destined for a consolidating type trade with sustaining rallies not in the cards.
Flat price wheat futures are trying to suggest they may have gone low enough for now. There is room for rallies, maybe 10-15 cents. Given what appears to a more than ample global supply and not any unknowns I have to question this market’s ability to make a move of substance in either direction over the near term.
Daily Support & Resistance – 8/14
Sept Chgo Wheat: $4.90 – $5.02
Sept KC Wheat: $4.18 – $4.30
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.