March Chgo Wheat closed 5 ½ cents lower ($5.13 ¼), May 6 cents lower ($5.19 ½) & July 6 ¼ cents lower ($5.25)
March KC Wheat closed 6 ½ cents lower ($5.00 ¼), May 7 cents lower ($5.10) & July 6 ¾ cents lower ($5.20)
Egypt tenders overnight for optional origin wheat – overnight Egypt buys 360.0 K T. wheat – 180.0 K T. French, 180.0 K T. Romanian
At the overnight Egyptian tender the US had two of the three lowest FOB offers yet did not garner any of the business. High freight rates out of the Gulf continue to kick us out of the competition. Last week’s talk of China buying US wheat as a gesture of good faith is falling by the wayside. As I mentioned many are with the belief the US will not get what they want of the ongoing trade talks but China will try and counter by saying they will buy all sorts of US goods. The saga continues.
Its been some time since advertised wheat basis values have changed. If there is a trend in export values both SRW and HRW read sideways to higher. March Chgo wheat gains on May, July and Sept but then wheat spreads lose ground after that. KC has an almost similar scenario. KC continues to ease to Chicago – that’s not a positive. Both March contracts tightening to their respective May and July contracts appear to be a function low deliverable supply.
As much as my heart would like to be friendly wheat my charts/brain keeps saying “it’s a trading range market – fade short term extremes for short term trading opportunities and leave your attitudes at the door”.
Daily Support & Resistance for 01/30
Mch Chgo Wheat: $5.08 – $5.20
Mch KC Wheat: $4.95 – $5.08
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.