March Chgo Wheat closed 12 cents lower ($6.51), May 10 ¾ cents lower ($6.51 ¾) & July 9 ¼ cents lower ($6.33 ¾)
March KC Wheat closed 12 ¾ cents lower ($6.25 ¼), May 13 cents lower ($6.28 ½) & July 11 cents lower ($6.27 ¾)
March Mpls Wheat closed 10 ½ cents lower ($6.23), May 10 ¾ cents lower ($6.32) & July 9 ½ cents lower ($6.37 ¾)
Weekly Wheat Export Inspections – 396.8 K T. vs. 350-550 K T. expected
Egypt announces an overnight tender for optional origin wheat
Wheat traders appear to be in a state of flux due to the Russian export taxes enacted for old crop and the discussion of potential export taxes for their new crop. This is deemed as bearish for Russian prices as it is expected the taxes will cut into their export potential. The other side of that coin is where will the normal Russian wheat buyers go? Yes, they will go elsewhere but will these buyers come to the US? We have yet to see any shift to the US. Some will say the Chinese will soon come for US wheat. I’m not sure about that as China has been an active wheat buyer from Australia.
Both interior and export markets for cash wheat remain quiet. Spreads for both Chgo and KC eased with today’s flat price selling. Both wheat sales and shipments remain uninspiring.
Similar to the rest of the CBOT Ag markets wheat prices have gone into a consolidation phase. Because the US wheat markets tend to be a follower the markets they follow have gone into a bit of a consolidation phase. I’m not sure the USDA will have much to say about the US supply-demand scenario next week. With that said wheat traders will remain resolute to follow the goings on elsewhere within the US Ag complex. It will be interesting to see if the overnight Egyptian tender offers a spark to the US futures market. It has been quite some time since we have seen US wheat offered at any of these tenders.
Daily Support & Resistance – 02/02
March Chgo Wheat : $6.45 – $6.65
March KC Wheat: $6.16 – $6.40
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