March Chgo Wheat closed 15 cents higher ($8.14), May 16 cents higher ($8.17 ¾) & July 16 cents higher ($8.06)
March KC Wheat closed 12 ¼ cents higher ($8.53 ¾), May 12 ¼ cents higher ($8.52 ¼) & July 11 ½ cents higher ($8.40 ½)
March Mpls Wheat closed 2 ¼ cents higher ($10.27 ¾), May 4 ¼ cents higher ($10.20 ¼) & July 5 cents higher ($10.01 ¼)
Weekly Wheat Export Sales – old crop vs. 200-550 K T. expected – new crop vs. 0-25 K T. expected
Renewed global wheat business and now concerns over the wintering conditions in the S. Plains has wheat prices following through to the upside for the 2nd day in a row. In addition to the dry conditions I’m not seeing any snow cover in case gets really, really cold. Adding to this is a story that has Ukraine thinking about instituting export limits for the 2nd half of its marketing year. Ever since Russia enacted its export tax it has brought more business to Ukraine. If we were to see export curbs on Ukraine wheat I have to think that would definitely shift some additional business to the US. There is nothing final on this as they are just thinking about it. Stay tuned!
Advertised basis levels for standard protein wheat remain fully steady. Premiums for higher protein wheat continue to move higher. Tomorrow is export sales day. Last week we saw some of the best sales of the season to date. Can we do it again? Wheat spreads ran steady to better in KC. In Chgo March loses to May and July while May and July gain on Sept forward contracts.
When the March Chgo contract topped out in late November it created some “neckline” resistance at the $8.20-$8.25 level. My thought is that this level should hold going into the 3-day weekend. March KC has its near term resistance at $8.60-$8.70.
Daily Support & Resistance – 12/23
March Chgo Wheat: $8.00 – $8.25
March KC Wheat: $8.40 – $8.65
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