Wheat Commentary

storck

Wheat – Just My Opinion

March Chgo Wheat closed 7 cents lower ($6.58 ¼), May 6 ½ cents lower ($6.57 ¾) & July 7 cents lower ($6.40 ½)

March KC Wheat closed 4 ¼ cents lower ($6.36 ¾), May 4 ¾ cents lower ($6.39 ½) & July 5 ½ cents lower ($6.35 ¾)

March Mpls Wheat closed 5 ¼ cents lower ($6.32 ¾), May 5 cents lower ($6.41 ½) & July 5 cents lower ($6.47)

Weekly Wheat Export Sales – old crop vs. 250-600 K T. expected – new crop vs. 0-50 K T. expected

Wheat trades with the rest of the crowd early (strong out of the box and then breaks hard). That’s where the similarity ended as wheat prices stayed depressed for the balance of the day. All of the wishing and hoping for better export business so far remains absent. There is a decent amount of world business happening but it seems all the US gets are the scraps. If you’re looking for a legitimate reason for today’s price action call it the noticeably higher US Dollar.

Cash wheat markets remain quiet; both domestic and export. Chgo spreads ran mixed as March loses to May but them May advances vs. the new crop. KC spreads saw modest tightening all the way out. For what it is worth the wheat spreads are trying to say “stick and stay as the business will soon come our way”.

The recent price action is not too dissimilar to what I’m seeing in the soybean and soybean meal charts. We made highs early last week and then we broke hard. We then retraced the break from last week and balked at the resistance at the resistance that was created last week. Closes below yesterday’s lows are not going to look too spiffy; $6.41 March Chgo and $6.20 March KC. If you want to maintain a bullish bias solid looking weekly export sales would help.

Daily & Resistance – 01/28

March Chgo Wheat : $6.43 – $6.67

March KC Wheat: $6.20 – $6.45

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