December Chgo Wheat closed 1 ¼ cents higher ($7.46), March 1 ¾ cents higher ($7.59) & May 1 ¾ cents higher ($7.62)
December KC Wheat closed 4 cents higher ($7.45), March 4 cents higher ($7.52 ¾) & May 4 cents higher ($7.55 ½)
December Mpls Wheat closed 13 ½ cents higher ($9.39), March 12 cents higher ($9.27 ¾) & May 10 ¼ cents higher ($9.13 ½)
Weekly Wheat Export Sales – old crop vs. 200-500 K T. expected – new crop vs. none expected
Mpls wheat resumed its leadership role on Wednesday as its first three contracts moved out of a multi-weeks old sideways mode into new contract high ground. KC followed Mpls’ cue with only modest gains while Chgo brought up the rear with the least amount of gain on the day. Overnight Egypt bought 240 K T. of wheat from Russia and Romania. They paid with freight included about $6-$7 higher vs. their Sept 8th purchases. Egypt is not the only country looking for wheat; Tunisia is looking for durum and I hear Pakistan is back again after last week’s purchases.
Despite the new highs in the Mpls market and the strength of the World wheat markets the technical look at both Chgo and KC suggest some down flagging. Down flags are just pauses in the run higher and they do act as springboards for higher prices. I think the reason for the pause is that despite what appears as great interest in the World wheat circles I’m not see all that much coming the US’ way. I believe we have good support at lower levels; something nearer to the mid-$7.20’s.
Daily Support & Resistance – 10/07
Dec Chgo Wheat: $7.33 – $7.59
Dec KC Wheat: $7.33 – $7.55
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