May Chgo Wheat closed 7 cents lower ($6.40), July 6 ½ cents lower ($6.30 ½) & Sept 6 cents lower ($6.30 ¼)
May KC Wheat closed 7 ¼ cents lower ($6.01), July 6 ¾ cents lower ($6.05 ¾) & Sept 6 ½ cents lower ($6.10 ¾)
May Mpls Wheat closed 4 ½ cents lower ($6.33 ¼), July 4 ¾ cents lower ($6.40 ½) & Sept 5 ¼ cents lower ($6.46)
Weekly Wheat Export Sales – old crop vs. 150-500 K T. expected – new crop
What a flaky market as the day-to-day flip-flop continues. Russia talks about a larger new crop and possibly not needing its interfering export taxes. Australia talks about going all out with its new crop planting (meaning planting as much as they can). The other side of that coin is the talk that spring wheat acres in the US will suffer due to additional planting of corn/soybeans. In case you haven’t noticed Mpls steadily gains on both Chgo and KC.
Interior cash wheat basis for standard protein continues to run unchanged. This holds true for both the SRW and HRW basis for export. Spreads were widening in both Chgo and KC in response to the flat price selling. Couldn’t help but notice that hasn’t been the case with the Mpls market.
The sideways to lower grind continues despite the flaky day-to-day flip-flopping. $6.30 has been support for the May Chgo contract since early January. I have to ask myself if we’ve gone to the well one too many times.as far as that level continuing to provide support. The $5.90 level has been doing the same for the May KC. I’ve been told that the nearby KC contract below the $5.90 level becomes competitive with corn in the southwest. Will this become a supporting issue for KC to gain on Chgo? The Chgo market is where all the specs play while the KC market is much more of a fundamental market.
Daily Support & Resistance – 03/18
May Chgo Wheat : $6.30 – $6.50
May KC Wheat: $5.90 – $6.10
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