May Chgo Wheat closed 8 ½ cents lower ($7.25 ¼), July 10 cents lower ($7.22 ¾) & Sept 11 ¾ cents lower ($7.20 ¾)
May KC Wheat closed 15 cents lower ($6.89 ¼), July 14 ¾ cents lower ($6.96 ½) & Sept 14 ½ cents lower ($7.00)
May Mpls Wheat closed 15 ½ cents lower ($724 ¼), July 15 ¼ cents lower ($7.32) & Sept 14 ½ cents lower ($7.38 ¾)
Weekly Wheat Export Sales – old crop vs. 0-300 K T. expected – new crop vs. 200-450 K T. expected
Flat price wheat follows the crowd in the Ag complex; liquidation/profitaking after the recent sharp rally. After Egypt passing on its optional origin tender many came away with the thought wheat prices are too high from a fundamental point of view. Sure, we’ve increased wheat feeding but not to the point that substantiates the recent $1.50 rally. Okay, the condition of the US winter wheat crop is not the best but it’s my thought the increased acres should offset some of that less than desirable condition. My bottom line for the near term is too see some additional liquidation/profitaking as we move closer to month end. I think $7.00 is initial support for July Chgo; better closer to $6.80. I have similar ideas for July KC; $6.75-$6.70 can be viewed as initial support; better closer to $6.60.
Daily Support & Resistance – 04/29
July Chgo: $7.00 – $7.35
July KC Wheat: $6.80 – $7.10
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