December Chgo Wheat closed 6 cents higher ($7.24 ¾), March 5 cents higher ($7.36 ¾) & May 4 ¼ cents higher ($7.41)
December KC Wheat closed 9 ¼ cents higher ($7.31), March 8 ½ cents higher ($7.38 ½) & May 8 ½ cents higher ($7.42 ¼)
December Mpls Wheat closed 11 ¼ cents higher ($9.60), March 10 cents higher ($9.48) & May 8 ¼ cents higher ($9.32)
Weekly Wheat Export Sales – old crop vs. 250-500 K T. expected – new crop vs. 0-20 K T. expected
The recent break in wheat prices seems to have stirred some interest in US origin as interior basis levels and export levels are starting to show some improvement for HRW. The recent 6-day move lower in futures is starting to show signs of supporting. World wheat trade rebounded some today after taking a breather yesterday. The softening US Dollar made standing in for the current break a bit easier to deal with. Yesterday’s story about Russia having a larger wheat crop vs. the possibility of Iran coming after 8.0 M T. has many scratching their heads. Mpls wheat continues to its grind higher as it once again registered new contract highs and new high closes. It is my thought that if this market continues in this fashion there is no way the Chgo and KC will continue to sustain its current correction phase. I can’t help but notice that while the Chgo and KC flat price were correcting the KC market was resuming its dominance over Chgo. Longer term I have to think that is supportive for KC’s flat price. In summary – long hard wheat (Mpls and/or KC) vs. short soft wheat (Chgo).
Daily Support & Resistance – 10/15
Dec Chgo Wheat: $7.18 – $7.40
Dec KC Wheat: $7.24 – $7.48
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.