March Chgo Wheat closed 6 ¼ cents lower ($6.44 ¾), May 6 cents lower ($6.45 ¾) & July 3 ¾ cents lower ($6.30)
March KC Wheat closed 6 ¼ cents lower ($6.19), May 6 cents lower ($6.22 ½) & July 6 cents lower ($6.21 ¾)
March Mpls Wheat closed 2 cents lower ($6.21), May 2 cents lower ($6.30) & July 1 ¾ cents lower ($6.36)
Egypt announces an overnight tender for optional origin wheat– overnight Egypt buys 480 K T. out of the 1.0 M T. offered
Despite Egypt taking 480 K T. of wheat at their overnight tender US wheat futures struggle. One item in particular jumped out at me – just over 1.0 M T. were offered to them. That tells me the world has no shortage of available wheat (just high prices). As long as World prices stay relatively high it should work to keep the US markets alive while the lack of business coming our way will work to keep our markets vulnerable to waves of liquidation.
US cash wheat markets remain quiet. This holds true for both interior and export basis. Nearby spreads eased ever so slightly while ore notable losses were seen in the old crop/new crop spreads.
The Monday high to today’s low represents a 30 cent break. Further weakness tonight, tomorrow should open the door for a bounce. No need to sell this market in the hole.
Daily Support & Resistance – 02/03
March Chgo Wheat : $6.36 – $6.55
March KC Wheat: $6.10 – $6.30
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.