Wheat Commentary


Wheat – Just My Opinion

Dec Chgo Wheat closed 3 ¼ cents higher ($5.58), March 2 ¾ cents higher ($5.65 ¾) & July 1 cent higher ($5.68)

Dec KC Wheat closed 4 ½ cents higher ($4.91 ¾), March 4 ½ cents higher ($5.02 ¾) & July 4 ¼ cents higher ($5.15 ¾)

Dec Mpls Wheat closed 5 cents higher ($5.39 ¾), March 6 cents higher ($5.52 ¾) & July 5 cents higher ($5.68)

Overnight Egypt buys 405 K T. Russian wheat – paid $7-$8 per T. higher vs. purchases one week ago

Once again US wheat futures trade with the crowd. Whether it was the opening surge that corn and soybeans saw on the day session’s opening or the higher Russian prices it failed to sustain that early rally. The US Dollar continues to show a firming bias and that’s not good for US wheat to be competitive in the World’s export circles.

Like the rest of the US Ag sector wheat futures are moving into a technical corrective/consolidation phase following recent stout rallies. I don’t see prices completely breaking down but prices will not run away from us on the upside. For the time being Dec Chgo wheat is no worse than $5.40 no better than $5.80. I do think the KC market will continue to gain on Chgo but it too should remain range bound for now – no worse than $4.70 no better than $5.10.

Daily Support & Resistance – 9/23

Dec Chgo Wheat: $5.50 – $5.67 

Dec KC Wheat: $4.84 – $5.00

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.