Dec Chgo Wheat closed 6 cents higher ($5.50 ¼), March 5 ½ cents higher ($5.57) & July 6 cents higher ($5.62)
Dec KC Wheat closed 7 ½ cents higher ($4.82 ¾), March 7 ½ cents higher ($4.92 ¾) & July 7 ¼ cents higher ($5.07 ¼)
Dec Mpls Wheat closed ¼ cent lower ($5.29 ½), March ½ cent lower ($5.42) & July ¾ cent lower ($5.59)
Weekly Wheat Export Inspections – 563.4 K T. vs. 400-650 K T. expected
Weekly US Winter Wheat Progress – Planted – 35% vs. 35% expected vs. 33% 5-year average – Emerged – 10% vs. 8% 5-year average
After early weakness US wheat futures catch a bid stemming from the weaker US dollar, dryness in many of the major winter wheat regions (US, Ukraine, southern Russia). Argentina wheat regions have been dealing with dryness for some time now and now they are having some frost/freeze threats China accounting for one third of the weekly export inspections and inter-market spreading (against soybeans) also worked for today’s rally off of those early lows.
Advertised basis levels for standard protein wheat run unchanged. Last week we saw some strength in the higher HRW proteins. In Chgo spreads Dec gained on March while March loses to its forward contracts. In KC spreads ran steady to fractionally better. KC gains back some of its late last week losses to Chgo.
I’m not sure what to make of the price action in US Wheat futures. Usually when that happens I defer to short term trading; fading intra-day and inter-day extremes for short term trading opportunities. That will be the route I’m going with for now.
Daily Support & Resistance – 9/29
Dec Chgo Wheat: $5.41 – $5.57
Dec KC Wheat: $4.75 – $4.93
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.