March Chgo Wheat closed 14 ½ cents higher ($7.70 ½), May 13 cents higher ($7.75) & July 11 ½ cents higher ($7.68 ½)
March KC Wheat closed 18 ¼ cents higher ($8.03 ¾), May 17 ¼ cents higher ($8.04 ¾) & July 14 ¾ cents higher ($7.96 ½)
March Mpls Wheat closed 17 ½ cents higher ($10.26 ¾), May 16 ¼ cents higher ($10.16) & July 15 ¼ cents higher ($9.86 ½)
Weekly Wheat Export Sales – 650.6 K T. old crop vs. 200-400 K T. expected – no new crop vs. 0-50 K T. expected
Flat price wheat rebounds on the best weekly export sales of the season to date. A noticeably lower US Dollar helps. Hard wheat (KC & MPLS) is back to being a noticeable gainer vs. soft wheat (Chgo). That’s the way it should be if prices are going to sustain a decent rebound off of the recent 3 week break. Given the magnitude of the recent break today’s bounce is not yet testing recently established resistance. March KC wheat needs to get closer to the $8.20-$8.30 level while Chgo needs to see something closer to the $7.90-$8.00 level before decent resistance is being realized.
Interior cash wheat markets remain quiet. HRW rail to gulf strengthens while SRW at the gulf remains fully steady. Intra-market spreads tightened within all three varieties. As I mentioned earlier hard wheat is gaining on soft wheat to the point the March KC/Chgo came within 2 cents of its contract high earlier today. We’re looking at a 20 cent rally in the past 5 days.
So; can I say the worst is over for now? I said it one week ago; Chgo prices are now 6 cents lower vs. last Thursday, KC prices are 7 cents higher and Mpls prices are 4 cents higher.
Daily Support & Resistance – 12/17
March Chgo Wheat: $7.63 – $7.80
March KC Wheat: $7.92 – $8.12
The risk of trading and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.