May Chgo Wheat closed 9 ½ cents lower ($6.30 ½), July 8 ½ cents lower ($6.22) & Sept 8 ½ cents lower ($6.21 ¾)
May KC Wheat closed 14 cents lower ($5.87), July 13 ½ cents lower ($5.92 ¼) & Sept 13 ¼ cents lower ($5.97 ½))
May Mpls Wheat closed 7 ¾ cents lower ($6.25 ½), July 7 cents lower ($6.33 ½) & Sept 6 cents lower ($6.40)
Weekly Wheat Export Sales – 390.0 K T. old crop vs. 150-500 K T. expected – 139.0 K T. new crop vs. 0-100 K T. expected
US wheat futures had no friends today. Weakness elsewhere in the grain complex, the higher US Dollar and exporters overseas all saying buying interest has been limited at best. Moisture conditions in the central southern Plains are such they will now be able to withstand the next spate of dryness. Most of our exporting competitors suggest their winter wheat crops came through the winter largely unscathed. So here you have it – seems like everyone has wheat for sale and the potential buyers are seeing the current downtrend while saying I’ll let the market come to me. I’m not seeing any urgency to own wheat from the end user.
Interior cash wheat markets remain quiet for standard protein. Export markets are just as quiet. Spreads ran soft with the flat price selling.
So here we are at levels that has been supporting the flat price dating back to early January. Because we’ve been stair-stepping lower the flat price does not read oversold on a daily basis. As of this writing the only rationale for ownership is for a short term bounce and that does not show a lot of potential. It’s a buyers’ market right now and they’re saying, “not yet”.
Daily Support & Resistance – 03/19
May Chgo Wheat : $6.24 – $6.38
May KC Wheat: $5.80 – $5.94
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.