March Chgo Wheat closed 8 cents lower ($7.79 ¾), May 8 ¾ cents lower ($7.83) & July 11 ¼ cents lower ($7.74 ¼)
March KC Wheat closed 11 ¾ cents lower ($8.12 ¾), May 11 ¾ cents lower ($8.13 ½) & July 12 cents lower ($8.07 ¼)
March Mpls Wheat closed 17 ½ cents lower ($9.91 ½), May 15 ¾ cents lower ($9.85) & July 15 ½ cents lower ($9.67 ½)
Weekly Wheat Export Sales – 199.5 K T. old crop vs. 200-500 K T. expected – no new crop vs. none expected
Puny weekly export sales, Russia talking about a slight hike in export projections and the potential for beneficial moisture in the Southern US Plains all worked together to keep the wheat market under wraps. Bearishness elsewhere in the Ag complex added additional selling.
Not much happens with the cash wheat basis for either of the varieties. This holds true for export values as well. Interesting to note that despite the flat price selling bull spreads were working in Chgo. KC spreads ran mostly flat on the day.
I would like to think flat price wheat, both Chgo and KC, is in technical support. I think its easy to see the technical support but unfortunately the fundamental support remains lacking. We’ll take a fresh look at it next year.
Daily Support & Resistance – 12/31
March Chgo Wheat: $7.70 – $7.90
March KC Wheat: $8.05 – $8.25
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