May Chgo Wheat closed 2 cents higher ($6.47), July unchanged ($6.37) & Sept unchanged ($6.36 ¼)
May KC Wheat closed 1 ½ cents higher ($6.08 ¼), July ¾ cent lower ($6.12 ½) & Sept unchanged ($6.17 ¼)
May Mpls Wheat closed 1 ¼ cents lower ($6.37 ¾), July 1 ½ cents lower ($6.45 ¼) & Sept 1 ¼ cents lower ($6.51 ¼)
Not to be left out of the volatility fray the wheat market had an interesting day. Early in the day session new lows were seen for the current sideways to easier drift and then proceeds to rally 15-16 cents in Chgo and 16-18 cents in KC. The rationale for the break was the improvement in conditions as well as the forecast for more beneficial moisture in the coming days. All I can guess is that maybe some are seeing some impact from the February deep freeze and/or we may be looking at Chinese interest ahead of trade rep meeting in Alaska on Thursday.
Advertised basis levels for standard protein wheat remain quiet. This hold true for export values as well. Despite the quiet cash markets bull spreads were working in both Chgo and KC. I can’t say for sure if it was the flat price buying that buoyed the spreads or are we looking at some new export interest.
The price action remains very orderly with the sideways to easier drift. The “however” is you cannot chase the short term extremes unless you enjoy frustration. The $6.30 level (give or take a few cents) has been support for the May Chgo since the beginning of the year. That level was challenged today and it continues to hold. The May KC contract challenged its months’ old support at the $5.90 level at it held. I have to think these long term support levels will continue to hold until we know more about the success or failure of the new crop.
Daily Support & Resistance – 03/17
May Chgo Wheat : $6.36 – $6.56
May KC Wheat: $5.99 – $6.18
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