March Chgo Wheat closed 3 ¼ cents higher ($5.99 ¾), May 2 ¾ cents higher ($6.01 ¼), & July 2 cents higher ($5.96 ½)
March KC Wheat closed 3 ¾ cents higher ($5.66), May 3 ¾ cents higher ($5.70 ¼) & July 3 cents higher ($5.71 ½)
March Mpls Wheat closed 2 cents higher ($5.59 ½), May 1 ¾ cents higher ($5.68) & July 1 ¾ cents higher ($5.76 ¼)
Overnight Egypt buys 235 K T. wheat (120 K T. Romanian, 115 K T. Ukraine) – paid $7.83 per T. more vs. Dec 1st purchases – the new Russian export tax kept them from being competitive
Wheat prices traded cautiously higher following the recent whip-saw price action. I have to think the slightly better prices were in part to the higher global prices as evidenced by Egypt’s overnight tender. For the time being I have to think global prices will stay relatively firm just under Russian prices. It will be interesting to see if and when global wheat prices from the competition start matching Russian wheat prices. US wheat exports are still stymied with high freight rates.
Interior cash wheat prices remain quiet as do export prices. Interesting to note that bull spreads were working in all three of the US varieties. That suggests the door may have opened for better export potential as we move down the road.
Given the recent whip-saw action my bias is to see a trading affair develop between $5.80-$5.75 on the downside to $6.20-$6.25 on the topside.
Daily Support & Resistance – 12/16
March Chgo Wheat: $5.90 – $6.10
March KC Wheat: $5.55 – $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.