March Chgo Wheat closed 11 ¼ cents lower ($6.47), May 10 ¼ cents lower ($6.47 ½) & July 9 cents lower ($6.31 ½)
March KC Wheat closed 10 ¾ cents lower ($6.26), May 10 cents lower ($6.29 ½) & July 9 ¾ cents lower ($6.26)
March Mpls Wheat closed 13 ¼ cents lower ($6.19 ½), May 12 ¾ cents lower ($6.28 ¾) & July 12 ¼ cents lower ($6.34 ¾)
Weekly Wheat Export Sales – 380.5 K T. old crop vs. 250-600 K T. expected – 216.0 K T. new crop vs. 0-50 K T. expected
Since weekly wheat export sales were deemed as no big deal wheat prices succumbed to the selling that was all around it. Yesterday the excuse for easing was the strength in the US Dollar. Today the Dollar reversed course and it could not help the wheat market. It remains my opinion that until we see some better export demand or we start trading winter wheat conditions this market will continue to struggle to sustain rallies.
Interior cash wheat basis remains quiet for SRW while the HRW basis in Kansas is seeing a minor spark. Nothing happens with the export basis for either variety. Chgo spreads took a hit with the flat price selling while KC spreads only saw minor easing.
Yesterday I remarked how similar the wheat price action was to that of the soybean and soybean meal charts. Well, they still look that way. March Chgo wheat looks like it wants to revisit the $6.20 level and March KC wheat wants to revisit the $6.00 level.
Daily & Resistance – 01/29
March Chgo Wheat : $6.35 – $6.55
March KC Wheat: $6.15 – $6.36
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.