Dec Chgo Wheat closed 8 ½ cents higher ($5.92 ¾), March 8 cents higher ($5.98 ¼) & July 7 ¼ cents higher ($5.96 ½)
Dec KC Wheat closed 10 cents higher ($5.34 ¼), March 10 cents higher ($5.43) & July 9 ¼ cents higher ($5.53 ¾)
Dec Mpls Wheat closed 2 ¾ cents higher ($5.38 ¼), March 2 ½ cents higher ($5.51 ½) & July 1 cent higher ($5.68 ½)
Not to be left out of the bullish fray KC and Chgo wheat zoom higher. Chgo wheat sets a new 5 year high; a level not seen since April of 2015. One has to go back to August of 2018 to see nearby KC wheat prices this high. Mpls wheat acts like a slug as it has to compete with Canada’s better than expected crop. The rally in wheat is all about weather fears. It’s abnormally dry in the US winter wheat regions as it is in parts of Russia. In France it looks like a repeat of last fall; too wet to plant. I’m told Ukraine has seen some beneficial moisture in the past few days to prompt a winter wheat planting push. Needless to say the spec sector is jumping in with both hands.
Interior cash wheat markets remain quiet as do the respective export markets. Spreads in both KC and Chgo ran steady to marginally tighter in the current year while the old crop gained on the new crop.
Once again nothing bearish about the price action here other than maybe some short term inter-day overbought. Like the other grain markets we may have seen our highs until we see what the USDA has to say on Friday. Chgo wheat closed 9 cents off of the day’s high and KC wheat finished 8 ½ cents off of the days highs. The average trade guess for the US carryout is 887 million bu. (down 38 million). The average trade guess for the World wheat carryout is 317.23 M T. (down 2.14 M T.).
Daily Support & Resistance – 10/07
Dec Chgo Wheat: $5.84 – $5.98
Dec KC Wheat: $5.25 – $5.39
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 eclipse the high side of expectations. results.