December Chgo Wheat expired unchanged ($7.85 ½), March closed 1 ¾ cents lower ($7.87) & May 1 ¾ cents lower ($7.92 ½)
December KC Wheat expired 3 ¼ cents lower ($8.05 ¼), March closed ¾ cent lower ($8.11 ¾) & May ¾ cent lower ($8.12 ¾)
December Mpls Wheat expired 16 ¾ cents lower ($10.20 ¼), March closed 2 ¾ cents higher ($10.21) & May 1 ¾ cents higher ($10.10)
After the wheat market’s knee-jerk rally of last Friday and Monday it moved into a minor consolidation phase today. For a while it tried to run with the rest of the Ag trade but when that slowed down wheat prices slipped back into the minus column (Chgo & KC). I continue to hear of renewed interest in the global wheat market. Yesterday it was Algeria, Turkey and Japan showing interest and today it was Iran and the Philippines. European wheat prices took a wait and see attitude around Algeria’s tender as Algeria has lowered their standard so as to allow for Russian origin. Afternoon rumors have Algeria coming after 700-800 K T.
Not much is happening with SRW basis levels. I’m told the HRW in Kansas is a bit easier while unchanged in Oklahoma. The export market for either variety remain quiet. Despite finishing easier Chgo spreads ran steady within the current crop year and saw old crop gain a bit on the new crop. KC spreads were unchanged within the old crop and old crop saw fractional losses vs. the new crop.
As I mentioned the other day it is my thought flat price wheat is in the process of making interim lows. I’m thinking we could see a bit more testing of the recently established support prior to prices trying to sustain a move higher.
Daily Support & Resistance – 12/15
March Chgo Wheat: $7.75 – $8.00
March KC Wheat: $8.00 – $8.28
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