March Chgo Wheat closed 20 ½ cents lower ($7 83 ½), May 19 ½ cents lower ($7.88 ¾) & July 17 cents lower ($7.83 ¾)
March KC Wheat closed 25 ¼ cents lower ($8.21 ¾), May 23 ½ cents lower ($8.23 ¼) & July 18 ¼ cents lower ($8.20 ½)
March Mpls Wheat closed 25 cents lower ($9.99 ½), May 24 ½ cents lower ($9.93) & July 22 ¼ cents lower ($9.78 ½)
A lack of business here in the US and quiet conditions overseas opens the door for additional year-end selling/liquidation. The overseas wheat trade is quiet as most international wheat traders have taken the week off. They will have to come back to work as Egypt has announced an overnight tender this afternoon. This is Egypt’s first tender in a month when they appeared to be chasing the rally. Futures prices (Chgo) are now at least 40 cents lower vs. where they were at Egypt’s last purchase (November 29th).
The interior cash wheat market remains quiet as does the respective export markets. Wheat spreads had a widening bias in all three varieties reflecting the flat price selling.
If March Chgo wheat is going to be any good in the near term the $7.80-$7.75 level should be viewed as support. The same holds true for the March KC contract at the $8.20-$8.15 level.
Daily Support & Resistance – 12/29
March Chgo Wheat: $7.78 – $7.95
March KC Wheat: $8.16 – $8.35
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.