December Chgo Wheat closed 4 ¾ cents higher ($7.78 ½), March 3 ¼ cents higher ($7.90 ½) & May 2 ½ cents higher ($7.96 ¼)
December KC Wheat closed 4 ¾ cents lower ($8.14 ¼), March 3 cents lower ($8.19 ¼) & May 2 ½ cents lower ($8.19 ½)
December Mpls Wheat closed 17 cents higher ($10.37), March 9 ¾ cents higher ($10.19 ¾) & May 9 ½ cents higher ($10.09 ½)
Weekly Wheat Export Sales – old crop vs. 250-600 K T. expected – new crop vs. 0-50 K T. expected
Flat price wheat tries to stabilize on Wednesday. I did see some minor global activity which helped stabilize prices but not enough to sway the current run of liquidation. I still think prices have additional room to correct and one of the signs of that is the KC market losing to Chgo. This spread can correct another 10-18 cents before realizing support.
US cash markets (basis) remain quiet whether it’s for domestic use or for export. Bull spreads work in Chgo while bear spreads work in KC; another sign the current corrective phase is not over.
So I keep talking about how the wheat market’s corrective phase is not yet over. As of this writing I’m looking at March Chgo wheat trading down to the $7.75 – $7.70 level and March KC trading closer to the $8.00. Once I see those levels I’ll be inclined to say we’ve seen enough correction. What makes this all wrong? Mpls wheat turning around and moving into new high ground. Given the short spring wheat crop we had the Mpls market should be your upside leader.
Daily Support & Resistance – 12/02
March Chgo Wheat: $7.80 – $8.08
March KC Wheat: $8.08 – $8.35
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.