Wheat Commentary

storck

Wheat – Just My Opinion

Dec Chgo Wheat closed 4 ¼ cents lower ($6.15 ¾), March 4 ½ cents lower ($6.15 ¾), & July 2 ½ cents lower ($6.05 ¾)

Dec KC Wheat closed 2 ¾ cents lower ($5.49 ¼), March 3 ¼ cents lower ($5.56 ¼) & July 3 cents lower ($5.66)

Dec Mpls Wheat closed 3 ½ cents lower ($5.61 ½), March 1 ¼ cents lower ($5.73 ½) & July ¾ cent lower ($5.80)

It was a two-sided trade as participants weighed poor winter wheat conditions for the US HRW crop vs. better weather conditions for the winter crops in the US Southern Plains and in the Black Sea. The idea that conditions will improve in the near term won the battle. The day’s highs were set in the night session in Chgo and early in the day session for KC. The balance of the day session was spent on the defensive.

Interior cash wheat markets remain quiet as producer selling remains minimal. Not much happens with the KC export market while the SRW export market holds onto recent firming. Nearby spreads in Chgo ran steady to fractional improvement while the old crop lost to the new crop. KC spreads saw similar action.

Dec KC wheat honors Monday’s suggested downside reversal. Flat price Chgo appears to be leaking to be leaking to the downside from its recent consolidation at its upper end. $6.00 shows as the best looking near term support for Dec Chgo while the same can be said for the high $5.30’s for Dec KC.

Daily Support & Resistance – 10/28

Dec Chgo Wheat: $6.05 – $6.21

Dec KC Wheat: $5.39 – $5.55

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.