May Chgo Wheat closed 18 ¾ cents higher ($7.55 ¾), July 17 ¾ cents higher ($7.44 ½) & Sept 17 ½ cents higher ($7.44)
May KC Wheat closed 18 ¾ cents higher ($7.09 ¾), July 17 ¾ cents higher ($7.17) & Sept 17 ¾ cents higher ($7.22)
May Mpls Wheat closed 13 ¾ cents higher ($7.79 ½), July 13 ¾ cents higher ($7.82) & Sept 15 cents higher ($7.87)
Weekly Wheat Export Sales – old crop vs. 0-250 K T. expected – new crop vs. 100-500 K T. expected
Surprise, surprise – wheat futures are able to extend gains without being led by old crop corn. I think in the early going when old crop corn stumbled a bit it gave opportunity to the inter-market spreaders to take profit on long corn, long soybeans vs. short wheat. Adding to the day’s rally are continued reports of additional feed wheat business not only here in the US but abroad as well. Spring wheat areas still need additional moisture as do the HRW areas in the central southern US Plains. Moisture is in the forecasts for both of these areas but it’s one thing to forecast it while it is another to actually get it. I learned a long time ago dry areas are slow to change just like wet areas are slow to change.
For as strong as wheat futures looked today they remain in the same trading range that was defined over the past 7 days. Keep that in mind if one is thinking about chasing a rally that will challenge the highs we saw last Tuesday. Next Wednesday the USDA will give their first look at this coming year’s wheat production. I’m not sure they can give us enough bullish data to extend prices beyond what we saw last Tuesday.
Daily Support & Resistance – 05/06
July Chgo Wheat: $7.31 – $7.54
July KC Wheat: $7.05 – $7.28
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.