July Chgo Wheat closed 8 cents lower ($6.48 ½), Sept 7 ½ cents lower ($6.52 ½) & Dec 6 ¼ cents lower ($6.59 ¾)
July KC Wheat closed 5 ¾ cents lower ($5.98 ¾), Sept 5 ¼ cents lower ($6.06 ¼) & Dec 3 ½ cents lower ($6.17 ¾)
July Mpls Wheat closed 2 cents lower ($6.80 ¾), Sept 2 cents lower ($6.87 ½) & Dec 2 ¼ cents lower ($6.94 ½)
Weekly Wheat Export Sales – old crop vs. -75 +180 K T. expected – new crop vs. 200-600 K T. expected
Not be left out of the crash & burn this morning flat price wheat futures went along for the ride but their rebound fell far short of what we saw in the corn and soybean markets. At one point July Chgo wheat was 17 cents lower but the best it could retrace to was to 2 cents lower on the day before sliding back to an 8 cent lower close. The KC market wasn’t much different but with slightly less losses on the day. The Mpls market had the best performance finishing only 2 cents lower on the day. The spring wheat crop remains very much in question given the ongoing dry conditions in the Dakotas and the parts of Minnesota where spring wheat is grow. Right now the only threat to the HRW crop is the possibility of too much moisture in its near term forecasts.
Interior cash wheat markets remain quiet as most producers are still assessing their winter crop. Export basis levels appear quiet. Chgo spreads continue to leak wider. From a technical perspective the Chgo July/Sept spread should try and realize support at 4-5 cents under the July.
If I was an unwilling seller at yesterday’s lows just think where I am today? I have to learn just because I don’t want to sell that doesn’t mean become a buyer. I have to admit the price action leaves a lot to be desired for one trying to be a buyer. I still won’t press current levels but trying to be the hero and pick a bottom… Well he has left the building.
Daily Support & Resistance – 05/27
July Chgo Wheat: $6.40 – $6.62
July KC Wheat: $5.93 – $6.14
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.