Wheat Commentary


Wheat – Just My Opinion

Sept Chgo Wheat closed 2 cents lower ($7.06 ¾), Dec 1 ¼ cents lower ($7.22 ¼) & March ¼ cent higher ($7.37)

Sept KC Wheat closed 1 cent higher ($7.05 ¼), Dec ½ cent lower ($7.12) & March unchanged ($7.21 ½)

Sept Mpls Wheat closed 16 ¼ cents lower ($9.03 ¾), Dec 6 ¼ cents lower ($9.03 ½) & March 5 cents lower ($8.92 ¼)

In the early going wheat trades with the rest of the Ag sector but was the first market to reject its intra-day lows. At one point Dec Chgo wheat was down 16 ½ cents and Dec KC down 13 ½ cents. It is my thought that most of the early selling was tied to the month-end churn. The 1000 deliveries against the Chgo market was a bit of a surprise while most of its impact was in the spreads. The Mpls market suffers the greatest with its 283 deliveries as most were expecting not to see any. Given today’s price performance in the Chgo and KC markets any more downside in addition to what we saw today should be quite limited.

Daily Support & Resistance – 09/01

Dec Chgo Wheat: $7.16 – $7.32

Dec KC Wheat: $7.08 – $7.24

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.