Sept Chgo Wheat closed 4 ½ cents higher ($5.12), Dec 4 ½ cents higher ($5.22) & March 3 ¾ cents higher ($5.28 ½)
Sept KC Wheat closed 7 ½ cents higher ($4.37 ½), Dec 7 ½ cents higher ($4.49) & March 7 ¾ cents higher ($4.59 ¼)
Sept Mpls Wheat closed 3 cents higher ($5.10), Dec 2 ¾ cents higher ($5.23 ¾) & March 1 ¾ cents higher ($5.35)
Weekly Wheat Export Sales – old crop vs. 300-600 K T. expected – new crop vs. none expected
Flat price wheat firms from the recent Monday/Tuesday flip-flop (higher Monday, lower Tuesday). There is a fair amount of global wheat business happening and earlier this AM there was a rumor of interest for US hard wheat. With that said the KC market was your upside leader today. As I’ve mentioned in the past US wheat futures are a follower. In the past few days they have been a follower of the corn and soy markets, today they were a follower of the World markets.
Not much happens in the wonderful world of the US cash wheat markets. This holds true for both the interior market and for export. Chgo spreads had a slight tightening bias Dec forward while KC spreads ran pretty flat.
Flat price Chgo wheat is coiling as Tuesday trades inside of Monday and today trades inside of Tuesday. The best looking support for Dec Chgo wheat is down towards the $5.10 level while resistance begins at $5.30 on up. There is a breakdown gap from July 31st against $5.37 ¾. Dec KC wheat is beginning to probe its resistance starting with the $4.50 level. Its July 31st gap is $4.51. Without some notable business I’m not sure this market has the wherewithal to follow through to the upside. My inclination, however, is to buy KC and sell Chgo.
Daily Support & Resistance – 8/20
Dec Chgo Wheat: $5.14 – $5.30
Dec KC Wheat: $4.40 – $4.52
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.