Wheat Commentary


Wheat – Just My Opinion

July Chgo Wheat closed 23 ¾ cents lower ($6.39), Sept 22 ¾ cents lower ($6.43) & Dec 22 ¼ cents lower ($6.49 ¾)

July KC Wheat closed 25 ½ cents lower ($5.85 ¼), Sept 25 cents lower ($5.94 ¼) & Dec 23 ¾ cents lower ($6.04 ¾)

July Mpls Wheat closed 9 cents lower ($7.51 ¼), Sept 10 ¼ cents lower ($7.56 ¼) & Dec 10 cents lower ($7.55 ½)

Weekly Wheat Export Sales – old crop vs. 200-500 K T. expected – new crop vs. none expected.

For the first half of today’s session wheat prices tried to stand in with just minor losses. The domino effect finally got into this market as other Ag price losses were getting dramatic. If the US Dollar continues to move higher it will severely limit US wheat’s ability to compete with our competitors in the global export circles. The stronger Dollar will work to offset any further price weakness. Similar to the other Ag markets the longer term weekly wheat charts are suggesting our best prices have come and gone. That doesn’t mean trading opportunities have come and gone. Wheat trading has a history of shorter term trends within a longer term trend. Fading the short term inter-day charts when they get into an extreme has benefited my in the past. In other words it’s a good trading market as long one doesn’t chase the short term extremes looking for the home run.

Daily Support & Resistance – 06/18

Sept Chgo Wheat: $6.33 – $6.60

Sept KC Wheat: $5.80 – $6.10

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.