May Chgo Wheat closed 28 ¼ cents lower ($7.26 ½), July 28 ¼ cents lower ($7.01 ½), & Sept 27 cents lower ($7.01 ¼)
May KC Wheat closed 30 ½ cents lower ($6.52 ¼), July 33 cents lower ($6.57 ¾) & Sept 31 ¾ cents lower ($6.63 ¼)
May Mpls Wheat closed 2 ½ cents lower ($7.45 ½), July 24 ¼ cents lower ($7.41 ¼) & Sept 23 ¼ cents lower ($7.46 ¾)
Weekly Wheat Export Sales – 30.3 K T. old crop vs. -75 +110 K T. expected – 268.0 K T. new crop vs. 150-310 K T. expected
In the early going wheat prices tried to overcome the bearish price action in the corn and soybean markets. I did see some evidence of inter-market spreading that involved buying wheat vs. selling corn and soybeans. As the selling in corn and soybeans intensified what prices succumbed to that selling. Flat price wheat selling intensified when July KC went through the $6.80 level and when July Chgo went through the $7.10 level. The aforementioned levels were considered to be major swing points. Today’s plunge in prices highlights the bearish looking technical picture in both the Chgo and KC markets; a big time double top. So now we have a bearish looking technical picture that lines up with the USDA data from yesterday that offered little incentive for high priced wheat ownership.
Daily Support & Resistance – 05/14
July Chgo Wheat: $6.90 – $7.18
July KC Wheat: $6.45 – $6.75
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.