Wheat Commentary

storck

Wheat – Just My Opinion

March Chgo Wheat closed 10 ¾ cents lower ($8.04), May 10 ¼ cents lower ($8.08 ¼) & July 5 cents lower ($8.00 ¾)

March KC Wheat closed 14 ½ cents lower ($8.47), May 13 cents lower ($8.46 ¾) & July 7 ¾ cents lower ($8.38 ¾)

March Mpls Wheat closed 8 cents lower ($10.24 ½), May 7 ¼ cents lower ($10.17 ½) & July 6 ¾ cents lower ($10.00 ¾)

Weekly Wheat Export Inspections – 271.3 K T. vs. 200-800 K T. expected

In the early going flat price wheat tried to run with the rest of the higher Ag markets but as the day session got going that strength soon faded away. Inter-market spreading (corn /wheat, beans/wheat) started the selling. Flat price selling picked up when weekly export inspections came in with a dismal number. Last week’s talk of improved global business was nowhere to be seen today. We’ll see if today’s break sparks any interest. The US Southern Plains continues to be quite dry. The USDA will report on the HRW condition in these states next Monday afternoon.

Interior cash wheat markets remain quiet. The same can be said for the export markets. Wheat intra-market spreads moved into a retreat mode as did the inter-market wheat spreads.

Last week I talked about March Chgo wheat have resistance against the $8.20-$8.25 level. So far this is holding true. $7.90 should act as initial support for today’s break followed by something closer to $7.80. The same can be said for $8.30 and $8.20 for the March KC contract.

Daily Support & Resistance – 12/28

March Chgo Wheat: $7.95 – $8.18

March KC Wheat: $8.35 – $8.63

 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.