Wheat Commentary

storck

Wheat – Just My Opinion

July Chgo Wheat closed 5 cents higher ($6.85), Sept 5 ¼ cents higher ($6.91 ¾) & Dec 4 ¾ cents higher ($6.99 ¼)

July KC Wheat closed 2 ½ cents higher ($6.32 ½), Sept 2 ½ cents higher ($6.40 ½) & Dec 1 cent higher ($6.49 ¾)

July Mpls Wheat closed 13 ¾ cents lower ($7.71 ¼), Sept 12 ¼ cents lower ($7.76) & Dec 9 ¾ cents lower ($7.75 ¼)

Scatter rains across N. Dakota and the Canadian prairies continues to pressure the Mpls spring wheat market. Chgo and KC find support from the firmer corn/feed grain markets. Thursday’s production, supply-demand update will make for interesting reading. The HRW production is expected to increase from the southern Plains while winter and springs crops in the Dakota’s and the PNW are expected decline. Minimal changes are expected in both the old crop and new crop carry-out data.

Cash wheat markets are continue as most are waiting for the winter harvest to begin in earnest. July Chgo continues to leak from index fund rolling. Sept Chgo takes on a minor leadership roll in the bull spreads. KC spreads were flat up front while the Sept assumes a minor leadership role in the spreads similar to what is happening in Chgo.

The Chgo and KC wheat markets have moved into a holding pattern. I get the impression wheat traders are waiting to see what the USDA has to say on Thursday as to the total production data. Mpls will continue to take its direction from the weather in the Dakotas and Canadian prairies.

Daily Support & Resistance – 06/09

Sept Chgo Wheat: $6.80 – $7.10

Sept KC Wheat: $6.30 – $6.60

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.