Dec Chgo Wheat closed 14 ¾ cents lower ($5.65 ½), March 7 ¾ cents lower ($5.77 ¼), & July 7 ½ cents lower ($5.81)
Dec KC Wheat closed 8 ¼ cents lower ($5.37 ½), March 8 cents lower ($5.39) & July 7 ¾ cents lower ($5.48 ¾)
Dec Mpls Wheat closed unchanged ($5.34 ½), March 3 ¾ cents lower ($5.49 ¼) & July 4 ¼ cents lower ($5.65 ¾)
Last Thursday Egypt bought 175 K T. of wheat and they paid an average price of $275.12 per M T. (C&F). Overnight they bought 170 K T. at an average price of $274.24 per M T. (C&F). The trade took this as bearish and within a blink of the eye March futures were down 10 cents. Futures managed a quick bounce back to unchanged but that eroded as the day went on. Not even the US Dollar eroding into new low ground could stimulate any staying interest. The bottom line to all of this is that the World is flush with wheat and the US market share would be almost nil without recent Chinese interest.
Interior cash wheat markets remain quiet. The same holds true for our export markets. March forward spreads in both Chgo and KC ran steady to fractionally weaker.
Wheat price charts are nothing short of ugly looking. The best looking short term support for the March Chgo contract doesn’t come into play until $5.60. $6.00 is starting to look like a brick wall. The March KC market is not much better looking. $5.20 looks like the best near term support while $5.50 starts some significant looking resistance. Adding to the gloomy daily picture weekly charts are just getting going with their downside momentum.
Daily Support & Resistance – 12/02
March Chgo Wheat: $5.70 – $5.88
March KC Wheat: $5.30 – $5.47
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.
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.