March Chgo Wheat closed 1 ½ cents higher ($5.27 ¼), May ½ cent lower ($5.29 ¼) & July 2 ½ cents lower ($5.30 ¾)
March KC Wheat closed ¾ cent higher ($5.11 ¼), May 1 ¾ cents lower ($5.16 ½) & July 5 cents lower ($5.21 ½)
The feature of the last three days has been the intra-market bull spreads for both Chgo and KC. Is there some Chinese business to be done? I know they’ve talked about it but prior to the last three days there has been little indication of such. I know deliverable registrations are next to nothing. Russian prices are such they have priced themselves out of the market at least according to last week’s Egyptian tender. I know the trade is talking about a potentially bullish “seedings” report the USDA is scheduled to release on Friday. Other than that the flat price continues to be a trading range affair; March Chgo once again is knocking at the door of the $5.30-$5.40 resistance level. March KC is not far from trendline resistance at around the $5.15 level.
Interior cash markets for SRW run steady to firm. The Gulf for SRW is slightly better as well. Interior cash markets for HRW are noticeably stronger as are its Gulf values. KC is still an almost bearish looking discount to Chgo.
Charts are supportive looking. Bull spreads are working. Cash markets have strengthened. These are all of the ingredients needed to support higher prices. Unfortunately I don’t chase inter-day extremes in wheat. Is the time I’m going to be wrong?
Daily Support & Resistance for 02/06
Mch Chgo Wheat: $5.20 – $5.32
Mch KC Wheat: $5.05 – $5.18
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