Wheat Commentary

storck

Wheat – Just My Opinion

March Chgo Wheat closed 22 ¼ cents higher ($6.40 ¾), May 19 ¼ cents higher ($6.38 ½) & July 15 ½ cents higher ($6.27 ¼)

March KC Wheat closed 16 ¼ cents higher ($6.01 ¼), May 16 ½ cents higher ($6.04 ½) & July 15 ½ cents higher ($6.05 ¼)

March Mpls Wheat closed 15 ¾ cents higher ($5.96 ¼), May 15 cents higher ($6.04 ¼) & July 13 ¼ cents higher ($6.08 ¾)

Weekly Wheat Export Sales – old crop vs. 200-600 K T. expected – new crop vs. 0-25 K T. expected

So much for my idea the wheat is no better no worse than a trading affair. Both Chgo and KC pump out new highs and new high closes. I’m not sure what’s behind this latest surge other than catch up with the rest of the Ag sector. There is still concern over the Russian export tax and quota and its ramifications going forward but I’m not seeing any eye-opening export business. I can rationalize the rally due to the price of corn in feed circles suggesting the substitution of feed wheat. Other than that it’s the euphoria that’s overtaking the entire US Ag sector.

Interior cash wheat prices are trying to a show spark mostly due to slow movement. Export values however remain stable/quiet. Bull spreads were working noticeably in Chgo while KC spreads are in more a grinding fashion tighter.

It’s hard to argue with new highs and new high closes. I won’t. Many years ago the old man told me charts will move prior to the news. I wonder what the new news is going to be.

Daily Support & Resistance – 12/31

March Chgo Wheat : $6.30 – ???

March KC Wheat: $5.90 – ???

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