Dec Chgo Wheat closed 1 cent lower ($4.96 ½), March 3 ¾ cents lower ($5.07 ¾) & July 4 ¾ cents lower ($5.21 ½)
Dec KC Wheat closed 1 cent lower ($4.66), March ¼ cents higher ($4.92 ½) & July 1 ¼ cents lower ($5.16 ¼)
Weekly Wheat Export Sales – 377.1 K T. old crop vs. 250-500 K T. expected – no new crop vs. none expected
Feeble looking export sales lead to feeble looking price action. KC continues to try to regain some of its recent losses against Chgo. The spread trade in Chgo is no less than vicious involving the Dec contract. It was just a few days ago that the Dec/March spread into a 6 cent carry. Today it traded out to a 15 cent carry before finishing at an 11 cent carry. There is some talk that some deliverable receipts that were cancelled over the past few weeks may get registered for 1st notice day. Starting the day there were just 10 registrations in Chgo and 152 in KC. We’ll know more in 6-8 hours. The bottomline for US wheat is that disappearance is barely short of pathetic.
Interior SRW cash prices remain quiet. There is not much difference in regards to SRW for export. Chgo spreads, for the time being appear to be a trading affair; not following through in either direction. The interior HRW basis continues to show a firm bias while running unchanged. It’s the same story for HRW export. KC spreads continue to run with a soft bias.
Chgo wheat continues to be a minor trading affair at its recent low end which sits atop the bottom that was established last December, January. KC is trying to recoup some recent losses but the price action looks less than inspiring. Unless the US export market for wheat starts to pick up we’re going nowhere fast.
Daily Support & Resistance for 11/30
Mch Chgo Wheat: $5.03 (?) – $5.16
Mch KC Wheat: $4.85 – $5.00
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