Wheat Commentary


Wheat – Just My Opinion

March Chgo Wheat closed 4 ¼ cents higher ($6.18 ½), May 4 ¼ cents higher ($6.19 ¼) & July 4 ¾ cents higher ($6.11 ¾)

March KC Wheat closed 8 cents higher ($5.85), May 7 ¾ cents higher ($5.88) & July 7 ½ cents higher ($5.89 ¾)

March Mpls Wheat closed 3 ¾ cents higher ($5.80 ½), May 3 ¾ cents higher ($5.89 ¼) & July 3 ½ cents higher ($5.95 ½)

Somebody had to the weak sister today and it was the wheat market. As of this writing the wheat market has the least strong fundamentals vs. the corn and soybean markets. This can change months from now when the winter crop emerges from dormancy but for the time being this market gets the short side of inter-market spreads. If the corn and soybean markets continue to move higher wheat prices will move higher as well but to a lesser extent. If corn prices get crazy on the upside this will open the door for feed wheat and the KC market should be the best recipient.

The SRW cash market is not showing me much at all whether it be domestic or for export. The export market for HRW remains quiet while the interior market is trying to show a spark. Spreads in Chgo ran steady to fractionally weaker while spreads in KC ran steady to fractionally better.

For the time being I have think March Chgo wheat is no better, no worse than a trading affair between $5.85 and $6.35. Overall the wheat market’s role as a follower should continue.

Daily Support & Resistance – 12/30

March Chgo Wheat : $6.13 – $6.28

March KC Wheat: $5.78 – $5.92

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.