Wheat Commentary


Wheat – Just My Opinion

Sept Chgo Wheat closed 9 ¾ cents lower ($7.27 ½), Dec 8 ½ cents lower ($7.42 ¾) & March 7 ¾ cents lower ($7.56 ¼)

Sept KC Wheat closed 8 ¼ cents lower ($7.15 ½), Dec 8 ½ cents lower ($7.28 ¼) & March 8 ¼ cents lower ($7.37 ¼)

Sept Mpls Wheat closed 6 cents lower ($9.17), Dec 6 ½ cents lower ($9.04 ½) & March 5 ½ cents lower ($8.94 ¾)

Weekly Wheat Export Sales – 306.7 K T. old crop vs. 250-500 K T. expected – no new crop vs. none expected

Weekly wheat export sales, I thought, were no big deal. Wheat prices on Thursday go the route of most commodities pressured by the higher US Dollar and sharply lower energy prices but manage to trim the midday losses in the latter part of the day. At one point Dec Chgo wheat was down 20 cents and Dec KC down 17 cents. To finish down only 8 ½ and 8 ½ was almost a victory for the bulls. World wheat prices remain high and that has potential buyers very selective about how much they buy. It’s this type of cautiousness that has prompted the recent correction. Going forward I’m still with the idea US wheat futures will be in a correction/consolidation phase for at least a few more days if not longer. I think Dec Chgo wheat should realize some decent support below the $7.20 level and Dec KC down towards the $7.00 level.

Daily Support & Resistance – 08/20

Dec Chgo Wheat: $7.35 – $7.55

Dec KC Wheat: $7.20 – $7.40

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.