Wheat Commentary

storck

Wheat – Just My Opinion

Sept Chgo Wheat closed 7 ½ cents higher ($5.19 ½), Dec 6 ½ cents higher ($5.28 ½) & March 6 ½ cents higher ($5.35)

Sept KC Wheat closed 4 cents higher ($4.41 ½), Dec 3 ¾ cents higher ($4.52 ¾) & March 3 ½ cents higher ($4.62 ¾)

Sept Mpls Wheat closed 3 ¼ cents higher ($5.13 ¼), Dec 3 ¾ cents higher ($5.27 ½) & March 3 ½ cents higher ($5.38 ½)

Weekly Wheat Export Sales – 523.0 K T. old crop vs. 300-600 K T. expected – no new crop vs. none expected

I’m not sure why the wheat market chose to go it alone today other than inter-market spreading vs. the soft corn and soybean markets. I did not think weekly export sales were all that impressive. Yes, there is a fair amount of world business going on but I’m not sure the US is getting much of it. The rumors of export interest for US hard wheat has yet to materialize. I’m told that Russian ports are increasing loading fees which in turn makes their prices higher when quoted on a C&F basis. The most constructive near term item US wheat futures have going for themselves is the technical look as charts do read higher.

Not much happens with the interior advertised basis levels. If anything the Ohio River appears to be a bit easier for SRW. The gulf remains quiet for both varieties. Bull spreads were working in Chgo. This could be in response to the flat price buying and maybe some first notice day positioning schedule for next Friday. This will be our first glimpse at new crop availability with the CBOT delivery system.

As I mentioned earlier wheat charts do look constructive. I am showing decent looking congestive type resistance beginning at today’s highs. I’m not wild about chasing rallies and will choose to fade short term intra-day and inter-day extremes as that has been working well for the past few days.

Daily Support & Resistance – 8/21

Dec Chgo Wheat: $5.24 – $5.38 

Dec KC Wheat: $4.45 – $4.57

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.