Wheat Commentary


Wheat – Just My Opinion

Dec Chgo Wheat closed 2 ½ cents higher ($5.97 ¾), March 3 ½ cents higher ($6.06 ½), & July 1 cent higher ($6.05 ¼)

Dec KC Wheat closed 5 ¼ cents higher ($5.57 ¾), March 4 ¾ cents higher ($5.66 ¼) & July 4 ½ cents higher ($5.76)

Dec Mpls Wheat closed 1 ½ cents higher ($5.50 ¼), March 1 ½ cents higher ($5.67 ¼) & July 1 ½ cents higher ($5.83 ¾)

Weekly Wheat Export Sales – old crop vs. 250-500 K T. expected – new crop vs. none expected

Are US wheat futures going anywhere any time soon? It seems that most of the intra-day trade is inter-market spread related against the corn and soybean markets. The recent global trade of the past two weeks appears to be slowing down. Interior cash wheat markets remain quiet. The SRW basis at the Gulf continues to advance while the HRW basis at the Gulf remains slack looking. Is the strength at the Gulf for SRW trying to tell us that we may have some business to look at? Watch the breakdown of tomorrow’s week export sales report.

For the time being I’m not looking past wheat futures as a trading range affair. Fading short term inter-day extremes still appears the best approach to this market.

Daily Support & Resistance – 11/19

March Chgo Wheat: $6.00 – $6.16

March KC Wheat: $5.60 – $5.75

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.