Dec Chgo Wheat closed 7 ½ cents lower ($4.99 ¾), March 8 ½ cents lower ($5.17 ½) & July 8 ¼ cents lower ($5.36 ½)
Dec KC Wheat closed 6 ¾ cents lower ($4.94 ¾), March 7 ¼ cents lower ($5.20 ½) & July 7 ¾ cents lower ($5.43)
Where’s the business that many had been talking about since Friday? The lack thereof had wheat prices retracing a fair portion of the Friday, Sunday night rally. The strength of the US Dollar continues to be a major inhibitor to the potential for higher prices. Despite the feeble looking price performance today I did see some positives to it. Today’s lows came within shouting distance of suspected support levels that were created last week. KC was able to get some back vs. Chgo. Export markets for both SRW and HRW are showing a firm bias.
Advertised cash wheat basis remains quiet. Recent improvements for higher protein also appeared to settle down today. Export markets, however, show a firm bias. Despite the lower price nearby bull spreads, especially in Chgo, are trying to show us something.
If the price action we saw late last week was an indicator that US wheat futures have gone low enough for now I don’t think we should see much more on the downside vs. what we saw today. The mid to low $4.90’s should be viewed as support for Dec Chgo and the low $4.90’s for KC.
Daily Support & Resistance for 10/31
Dec Chgo Wheat: $4.94 – $5.06
Dec KC Wheat: $4.90 – $5.01
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.