Wheat Commentary

storck

Wheat – Just My Opinion

March Chgo Wheat closed 4 ½ cents lower ($6.67 ¾), May 5 ½ cents lower ($6.68) & July 7 ¾ cents lower ($6.50 ½)

March KC Wheat closed 7 cents lower ($6.37), May 6 ¾ cents lower ($6.40 ¼) & July 7 cents lower ($6.39 ¼)

March Mpls Wheat closed 6 cents lower ($6.37 ½), May 6 cents lower ($6.46) & July 7 cents lower ($6.50 ¼)

So which crowd do our wheat markets follow today – higher world prices or a lower CBOT? Today it was the lower CBOT. I did not see much direct news involving the US wheat cash markets. I’m told the Argentine wheat producer has stepped up the selling of his recently harvested new crop but overall the numbers don’t appear to be all that great.

The interior cash wheat markets remain quiet. The Gulf eases for SRW which had been jumping higher in recent days while the HRW export market appears to be quiet. Despite the lower flat price Chgo spreads were getting back (and more) what they lost yesterday. KC spreads continue to be steady.

March Chgo wheat shows some decent looking support down towards the $6.50 level while resistance comes into play at $6.80 on up. Similar support for March KC wheat comes in around the $6.30 level while resistance begins at the $6.50 level. Given what world prices are doing my bias is to focus on buying breaks to suspected support levels.

March Chgo Wheat : $6.58 – $6.78

March KC Wheat: $6.30 – $6.48

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.