July Chgo Wheat closed 18 ¾ cents lower ($6.79 ¼), Sept 18 cents lower ($6.81), & Dec 17 ½ cents lower ($6.85)
July KC Wheat closed 14 cents lower ($6.33 ¾), Sept 13 ½ cents lower ($6.40) & Dec 12 ½ cents lower ($6.48 ¼)
July Mpls Wheat closed 16 ½ cents lower ($6.97 ½), Sept 17 ¼ cents lower ($7.03 ½) & Dec 15 ¾ cents lower ($7.10 ¼)
Weekly Wheat Export Sales – old crop vs. -75 + 150 K T. expected – new crop vs. 150-350 K T. expected
Wheat prices probably would have been lower today given the strong yield reports coming out of Kansas, beneficial forecasts for the Northern Plains and an improving European crop. The grand scale commodity liquidation seen early in the day session just made the losses that much greater. Short term technical considerations suggest a bit of short term oversold after today’s activity but given everything we know about the developing winter crop and the forecasts for the spring crop I can’t imagine there will be much upside potential.
Interior cash wheat markets remain quiet. Producers continue to assess their developing new crop while not wild about selling into the current flat price break. Spreads continue to widen reflecting the upfront selling.
If I thought the flat price performance was ugly before today I’m sure not getting any closer to being a fan of this market after today. I will admit given the recent sell-off we are much closer to suspected support levels vs. resistance levels. Yes, there is room to bounce but as of this writing that’s all I’m expecting.
Daily Support & Resistance – 05/20
July Chgo Wheat: $6.70 – $6.95
July KC Wheat: $6.25 – $6.45
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.