Wheat Commentary


Wheat – Just My Opinion

July Chgo Wheat closed 6 ¼ cents lower ($6.28 ¾), Sept 7 cents lower ($6.33 ¾) & Dec 4 ½ cents lower ($6.42 ¾)

July KC Wheat closed 3 ½ cents lower ($6.12 ½), Sept 3 ½ cents lower ($6.11 ¾) & Dec 3 ¼ cents lower ($6.22 ½)

July Mpls Wheat closed 7 cents higher ($8.67), Sept 4 ½ cents higher ($8.61 ¾) & Dec 3 cents higher ($8.46 ½)

Egypt announces an overnight tender for optional origin wheat

Strength in the US Dollar inhibits the winter wheat markets. Its inability to sustain the early attempt to rally did weigh a bit on the Mpls market. The Mpls market did register new contract highs and did register a new contract high close. Bull spreads are working in Mpls but not in Chgo. KC spreads run pretty steady. I still think the winter varieties have registered some interim lows last week. Demand may remain lackluster given the strength of the US Dollar. If you want to be long and you don’t have the patience for either Chgo and KC; Mpls flat price and/or both intra-market and inter-market spreads are the place to be.

Daily Support & Resistance – 07/14

Sept Chgo Wheat: $6.30 – $6.50

Sept KC Wheat: $6.05 – $6.25

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.