Sept Chgo Wheat closed 1 ¾ cents lower ($7.18), Dec 1 ¼ cents lower ($7.32 ¼) & March 1 ½ cents lower ($7.45 ½)
Sept KC Wheat closed unchanged ($7.04 ¼), Dec ¼ cent lower ($7.17 ¼) & March 1 cent lower ($7.26)
Sept Mpls Wheat closed 6 cents higher ($9.30 ¾), Dec 5 cents higher ($9.10 ¾) & March 4 cents higher ($8.95 ¾)
For the last number of days I’ve been saying the wheat market is in a correction/consolidation phase. That’s exactly what we did today. Wheat prices are not only in this phase with the flat price but also are the inter-market spreads whether it be wheat vs. wheat, wheat vs. corn or wheat vs. soybeans. As we move forward I believe the Mpls contract should be our upside leader followed by KC and then Chgo. On Monday Statistics Canada will update Canadian wheat production. Recent estimates are suggesting their “all” wheat production is 22.6 M T. Earlier this month the USDA suggested 24.0 M T. As I mentioned yesterday we will still have to deal with smaller wheat supplies vs. just how aggressive does the importer want to get (pay up) to secure his needs.
Daily Support & Resistance – 08/25
Dec Chgo Wheat: $7.21 – $7.45
Dec KC Wheat: $7.08 – $7.30
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