Sept Chgo Wheat closed 8 ¼ cents higher ($5.41 ¾), Dec 7 ¾ cents higher ($5.61 ¼) & March 7 ¼ cents higher ($5.82 ¾)
Sept KC Wheat closed 5 cents higher ($5.45 ¾), Dec 5 ½ cents higher ($5.72 ½) & March 5 ¾ cents higher ($5.95 ¼)
Egypt announces an overnight tender for optional origin wheat – overnight Egypt buys 240 K T. for Sept 21-30 shipment (60 K T. Romanian, 180 K T. Russian) and 180 K T. for Oct 1-10 shipment (all Russian origin)
On Tuesday the wheat market took a breather from its recent sharp sell-off. Monday’s lows were challenged early in Tuesday’s day session and they held. Those lows holding prompted some modest short covering as the day progressed. This type of scenario held true for the European market as well. I find it interesting that of the 24 offers that Egypt received for its overnight tender 23 of them came from the Black Sea area. That suggests to me that this areas crop was not as bad as we were earlier led to believe. What short covering we saw today I’m thinking was mostly spec in nature as Chgo led the way higher. When prices were at their beast a week or so ago KC was leading the way.
Interior wheat basis levels don’t change. Export basis levels continue to have a soft look. As much as many would like to say in regards to better business for the US it has yet to show up. Chgo spreads are showing signs of trying to stabilize after their recent sell-off. KC spreads made a new round of contract lows. One would think that if we have the floor for a bull market spreads would be putting in a better effort.
The interim trend continues to read lower. Tuesday’s bounce wasn’t real impressive. If US prices have to rely on overseas prices to perform and if they don’t we are looking at lower prices for the near term.
Daily Support & Resistance for 08/15
Dec Chgo Wheat: $5.54 (?) – $5.68
Dec KC Wheat: $5.64 (?) – $5.80
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