Wheat Commentary

storck

Wheat – Just My Opinion

March Chgo Wheat closed 27 ½ cents lower ($7.96 ½), May 28 ¾ cents lower ($7.99) & July 27 ¾ cents lower ($7.87 ¼)

March KC Wheat closed 27 ¼ cents lower ($8.00), May 28 ¼ cents lower ($8.03 ½) & July 28 ½ cents lower ($8.05 ½)

March Mpls Wheat closed 32 ¾ cents higher ($9.39 ¾), May 30 ¾ cents higher ($9.35 ½) & July 29 ½ cents higher ($9.27 ¼)

Weekly Wheat Export Sales (01/13) – old crop vs. 175-400 K T. expected – new crop vs. 0-50 K T. expected

No new news on the Ukraine front so flat price wheat takes a breather. I’m not sure the wheat flat price will correct all that much as another wave of cold weather for the US Southern Plains will be around next week. As far as the Ukraine/Russian issue is concerned it is one day at a time. Tomorrow is export sales day. Recent strength in the export basis suggests we might has something in the works unless it’s all about logistical issues.

Despite Chgo and KC flagging lower today I couldn’t help but notice the hard varieties are trying to re-establish themselves vs. Chgo. This tells me we can look for support areas established from the recent rally for buying opportunities. I could be wrong; I don’t believe the US is going to be the recipient of any new major export business unless what’s happening over the in the Black Sea region comes to blows. I’m thinking the US wheat markets move into a broad trading range affair. I’m looking at March Chgo wheat trading between the recent low of $7.35 to the late December interim high of $8.25.

Daily Support & Resistance – 01/21

March Chgo: $7.80 – $8.12

March KC: $7.86 – $8.18

The risk of trading futures and options can be be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.