May Chgo Wheat closed 1 ¾ cents higher ($6.29 ¾), July 2 ¼ cents higher ($6.33 ½) & Sept 2 ¾ cents higher ($6.35)
May KC Wheat closed 5 ¾ cents higher ($5.84 ¾), July 6 cents higher ($5.92 ¾) & Sept 5 ¾ cents higher ($5.99)
May Mpls Wheat closed 6 ¼ cents higher ($6.49), July 5 ¾ cents higher ($6.56) & Sept 5 cents higher ($6.61 ½)
Flat price wheat gets a bit of a bounce on Tuesday; call it the Monday/Tuesday reversal. A weaker US dollar is a supporting issue as it the dryness in the US Northern Plains, the Canadian Prairies and now parts of Europe. The only business I’m hearing involves feed wheat and most of that is being done in the World market. Spreads in Chgo continue to soften. It wasn’t that long ago the May/July was 10 cents over now flirting with 4 cents under. That tells me the new crop is looking good reducing the need to hold on to any old crop. Not much happens with the KC spreads.
The price action in Chgo wheat is trying to advertise it may have gone high enough for now. I’m not expecting a dramatic drop but rather a trading range affair between $6.10 and $6.50 (July). I’ll call July KC $5.70 to $6.20.
Daily Support & Resistance – 04/14
July Chgo Wheat : $6.25 – $6.40
July KC Wheat: $5.85 – $6.00
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