Sept Chgo Wheat closed 3 ¼ cents lower ($4.94 ½), Dec 1 ½ cents lower ($5.10 ¾) & March ¼ cent higher ($5.26 ¼)
Sept KC Wheat closed 3 cents lower ($4.87 ¾), Dec 2 cents lower ($5.13) & March 1 ¼ cents lower ($5.32)
Weekly Wheat Export Sales – old crop vs. 150-500 K T. expected – new crop vs. none expected
As goes European wheat prices so go Chgo wheat prices. Chgo prices were easier following Europe’s failure to register new highs. The European crop is still being assessed as they move through their winter harvest. Right now Germany is howling the loudest as to crop losses. I remain with the frame of mind Chgo futures will continue to be a follower of Europe. If they ease we will ease. If they rally we will rally. Tomorrow is weekly export sales. On Monday we saw the best inspections of the season to date. Can we hope that for sales?
Interior cash wheat markets are quiet as are the export markets. Bull spreads have been trying to work here since mid last week. They were dealt a noticeable setback on Wednesday as the nearby spreads approached technical upside breakout levels. I’m told cash sales continue to be relatively light.
US wheat futures, all by themselves, remain in the midst of a consolidation affair. What breaks them out of this consolidation will have to come from outside influences, most probably the European price action. Until then fading intra-day and inter-day extremes appears to be the most apropos for trading. For what it is worth the short term appearance resembles an upflag with the flagpole being the July 6th high to the July 11th low for Chgo and the July 6th high to the July 12th low for KC.
Daily Support & Resistance for 07/19
Sept Chgo Wheat: $4.85 – $5.08
Sept KC Wheat: $4.80 – $5.05
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.