March Chgo Wheat closed 12 cents higher ($7.70), May 12 cents higher ($7.73 ½) & July 11 ¼ cents higher ($7.66 ¼)
March KC Wheat closed 12 ½ cents higher ($8.04), May 12 ½ cents higher ($8.04 ¾) & July 12 ½ cents higher ($8.01 ½)
March Mpls Wheat closed 2 ¾ cents higher ($9.70 ½), May 2 ¾ cents higher ($9.65 ½) & July 3 ¾ cents higher ($9.51)
Flat price wheat was modestly higher Monday night stemming from the noticeably lower winter wheat condition reports. Their initial strength was really no big deal but when the corn and soybean markets took off to the upside wheat prices went along for the ride. I did see a resumption of some global business in the form of Tunisia. Other than the aforementioned I did not see much else.
Interior cash wheat markets don’t do a whole lot for standard protein. The export market for HRW is steady but quiet. I am seeing some new strength in the SRW export market. Wheat spreads saw minor fractionally improvement in Chgo while KC spreads ran flat out to September.
Okay; flat price wheat is looking at an interim double bottom; yesterday’s low vs. the December 15th low. To get this market positive looking March Chgo needs to get above the $7.90 level. The March KC contract needs to get above the $8.30 level. With all of this said it says flat price wheat has room to rally without suggesting we have a new bull market on our hands. As far as the weather in the US Southern Plans is concerned talk to me in mid-late March.
Daily Support & Resistance – 01/05
March Chgo Wheat: $7.60 – $7.82
March KC Wheat: $7.92 – $8.15
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