July Chgo Wheat closed 18 ¼ cents lower ($4.89 ½), Sept 16 cents lower ($4.92) & Dec 15 cents lower ($5.10)
July KC Wheat closed 3 ¾ cents lower ($4.83 ¾), Sept 11 ¼ cents lower ($4.94 ¾) & Dec 10 ½ cents lower ($5.18 ¼)
Egypt announces an overnight tender for optional origin wheat – overnight Egypt buys 175.0 K T. Russian wheat – only Russian & Ukraine origin were offered
I’m not sure who is leading who lower as both US and European prices were down sharply on Tuesday. The noticeable hike in spring wheat conditions weighed on US prices as did the US’ lack of competitiveness in World export circles. European prices were down with its onset of winter wheat harvest. I could not help but notice KC’s attempt to re-establish its premium over Chgo (I’ve always thought KC rallying over Chgo has a bullish slant to it.
Interior cash wheat prices continue to show a firm tone. Export prices read steady for SRW and a shade better for HRW. I have to think that if these interior cash prices stay firm it will improve the intra-market spreads. Unfortunately the flat price selling form the spec has overshadowed the stronger cash prices. Once the spec selling subsides I expect the intra-market and inter-market spreads to improve.
For as ugly as the wheat trade looked on Tuesday I’m finding some positive to it all. Sept Chgo wheat filled a gap that was created from July 3rd to the 5th and closed at the 3rd’s settlement of $4.91. Sept KC saw a similar trade as it filled the gap (exactly) from those two same days and closed well above the gap. Momentum indicators are trying to maintain a higher bias. If we can move higher from today’s trade I have to think those indicators will maintain a higher bias.
Daily Support & Resistance for 07/11
Sept Chgo Wheat: $4.88 – $5.00
Sept KC Wheat: $4.88 – $5.02
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.