Sept Chgo Wheat closed 5 ½ cents higher ($7.19 ¾), Dec 5 ¼ cents higher ($7.33 ½) & March 5 ¾)cents higher ($7.47)
Sept KC Wheat closed 2 ¼ cents higher ($7.04 ¼), Dec 1 ¾ cents higher ($7.17 ½) & March 2 cents higher ($7.27)
Sept Mpls Wheat closed 6 ¼ cents higher ($9.24 ¾), Dec 3 ½ cents higher ($9.05 ¾) & March 1 cent higher ($8.91 ¾)
Weekly Wheat Export Inspections – 657.8 K T. vs. 300-575 K T. expected
Spring Wheat Progress – Harvested 77% vs. 55% 5-year ave
There is nothing bearish here other than the goings on in commodities in general. We’ve moved into a correction/consolidation phase which I think was merited from a technical point of view. Dec Chgo wheat should be able to realize support below the $7.20 level. In early August we flirted with that level and now we’ve done it again over the past two days. I would like to think the same can be said for the Dec KC below the $7.00 level. The loss of supply not only in the US market but in the global market as well is not going to go away anytime soon. What will dictate any further gain in the flat price will come from the importers’ needs and just how aggressive they want to get. Delivery plays should be in the making for both the KC and Mpls markets. I’m not so sure about the Chgo market.
Daily Support & Resistance – 08/24
Dec Chgo Wheat: $7.30 – $7.45
Dec KC Wheat: $7.15 – $7.30
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