May Chgo Wheat closed 5 cents lower ($7.54 ¾), July 12 cents lower ($6.90 ¾), & Sept 19 ¼ cents lower ($7.28 ¼)
May KC Wheat closed 19 ¾ cents lower ($6.82 ¾), July 19 ¾ cents lower ($6.90 ¾) & Sept 19 ¼ cents lower ($6.95)
May Mpls Wheat closed 2 ¼ cents higher ($7.48), July 5 cents lower ($7.65 ½) & Sept 4 ½ cents lower ($7.70)
Weekly Wheat Export Sales – old crop vs. -75 +110 K T. expected – new crop vs. 150-310 K T. expected
The USDA cuts old crop wheat exports by 20 million bu. thus raising the carryout by a like amount. New crop wheat production comes in right in line with trade expectations. The new crop carryout projection comes in 44 million bu. higher than expected. The old crop and new crop wheat global carryout were close to expectations suggesting more than ample amounts of wheat available. I’m calling the USDA wheat data mostly neutral but when your trying for a bull market neutral data is bearish and the market responded accordingly. Adding to the bearish price action is the double top formation seen in both the Chgo and KC markets. The only wild card left for potential bullishness is the spring crop in the US due to the ongoing dryness in the US Northern Plains.
Daily Support & Resistance – 05/13
July Chgo Wheat: $7.15 – $7.45
July KC Wheat: $6.78 – $7.10
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.