December Chgo Wheat closed 15 ½ cents higher ($7.05 ¾), March 15 cents higher ($7.16) & May 14 ¼ cents higher ($7.19 ¼)
December KC Wheat closed 15 ½ cents higher ($7.06), March 15 cents higher ($7.14 ¾) & May 14 ½ cents higher ($7.19 ½)
December Mpls Wheat closed 15 ¾ cents higher ($9.03 ½), March 14 cents higher ($8.90 ¾) & May 12 ¾ cents higher ($8.78 ¼)
Weekly Wheat Export Sales – old crop vs. 250-600 K T. expected – new crop vs. none expected
Wheat is trying to move out of its recent minor correction. Confirmation doesn’t come until I see Dec Chgo wheat close above last week’s high, $7.17. The same holds true for the Dec KC market, above $7.23. I can’t help but notice that it seems every time we see a decent sized flat price correction a major importer announces another tender. This time its Pakistan. They have yet to announce the results of last week’s 500 K T. tender and they are now announcing a new 650 K T. tender. I saw the same type of importer interest one week ago yesterday. It appears that major buyers are realizing the potential for higher prices as we move through the marketing season are real and substantial.
After a brief 2 and a half day of correcting wheat futures appear ready to try the upside one more time. The September 30th wheat production and acreage update should loom large for further direction. Despite Chgo having the greatest spec interest It’s my belief the hard varieties, KC and Mpls, should lead the way higher. With that said I favor belong KC and Mpls vs. Chgo on the inter-market spreads. I’m also a fan of the bull intra-market spreads in both KC and Mpls.
Daily Support & Resistance – 09/23
Dec Chgo Wheat: $6.95 – $7.15
Dec KC Wheat: $6.95 – $7.18
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.