Sept Chgo Wheat closed 1 cent lower ($4.98 ¼), Dec ¾ cent higher ($5.23 ¼) & March ½ cent lower ($5.45 ¾)
Sept KC Wheat closed 2 ½ cents lower ($4.99 ¼), Dec 2 ¼ cents lower ($5.27 ¾) & March 3 ¼ cents lower ($5.50 ¾)
Overnight Egypt buys 350 K T. wheat – 60 K T. Ukraine, 290 K T. Russian – US origin was not offered
The spec long liquidation continues!! Granted Chgo prices finished fractionally mixed the KC market (and the European market) make new lows and new low closes for the current sell-off. Chgo’s fractionally mixed close was the result of the liquidation of the long KC/short Chgo spread. Overall the price action leaves a lot to be desired as far as suggesting the wheat markets are close to making interim lows.
Advertised interior wheat basis levels don’t change. Movement does not exist right now given the ongoing sell off in the flat price. The gulf remains quiet as well. Chgo Sept declines vs. the Dec as we move closer to 1st notice day (Friday). Dec Chgo gains on its forward contracts but I have to wonder if the fractional strength in the Dec is a result of rolling out of long Sept into the Dec. The nearby Sept/Dec KC spread loses only fractionally whereas the Dec KC gains on its forward contracts. Overall spreads in both markets remain wide giving me no indication of impending demand.
As I mentioned before the price action suggests the US wheat markets remain in the throes of liquidation. As much as I would like to think we are entering what appears to be good support I’m not seeing any hint of business that would lend support. As long as the other World markets remain in liquidation I have to think the US markets will also.
Daily Support & Resistance for 08/29
Dec Chgo Wheat: $5.17 ($5.13) – $5.35
Dec KC Wheat: $5.22 ($5.18) – $5.40
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