After Monday’s holiday wheat opened the session higher and extended gains throughout Tuesday. Support came from the administration’s decision to hold off on implementing tariffs until Feb 1 and until more research is done on current trade agreements. Weather forecasts calling for adverse weather conditions for the US Southern Plains and Delta states added support. Support spilled over from the other grains, which were also seeing heavy gains. A sharply lower US dollar added strength.
In Wednesday’s session wheat opened the session lower but managed to recover to trade mixed throughout the night. Mpls traded wild in the overnight session, gapping lower right out of the gate but then staging a recovery around 3 AM only to see selling return around 4:30 AM. But by the close, Mpls was the best performer, ending the session higher while the winter wheat months closed steady to lower. Weather concerns helped to give wheat strength today as the Southern Plains and Delta region experience winter wheat that is usually confined to the north. As of Tuesday’s close, Mpls March sits about 28 cents off contract lows.
On Thursday wheat opened steady in the Chicago contract but lower in Mpls and KC. Selling took charge in the overnight session pushing all three wheat exchanges lower during the night. Strength returned early in the day session with most of the support spilling over from strength in corn and soybeans. Late session pressure was due to reports that China is either cancelling or looking to resell numerous cargos of Australian wheat. Technically, wheat remains in the upper range and is still within striking distance of the next resistance level.
Target $6.35 to advance sales.
March MW support is at $5.85 while resistance is at $6.35.
For the week, Mar Mpls was at $5.9525 up 11.75 cents, Mar Chicago was at $5.44 up 14.25 cents, Mar KC was at $5.595 up 11.0 cents.
Wheat Weekly Comments January 24
Wheat Weekly Comments January 24
After Monday’s holiday wheat opened the session higher and extended gains throughout Tuesday. Support came from the administration’s decision to hold off on implementing tariffs until Feb 1 and until more research is done on current trade agreements. Weather forecasts calling for adverse weather conditions for the US Southern Plains and Delta states added support. Support spilled over from the other grains, which were also seeing heavy gains. A sharply lower US dollar added strength.
In Wednesday’s session wheat opened the session lower but managed to recover to trade mixed throughout the night. Mpls traded wild in the overnight session, gapping lower right out of the gate but then staging a recovery around 3 AM only to see selling return around 4:30 AM. But by the close, Mpls was the best performer, ending the session higher while the winter wheat months closed steady to lower. Weather concerns helped to give wheat strength today as the Southern Plains and Delta region experience winter wheat that is usually confined to the north. As of Tuesday’s close, Mpls March sits about 28 cents off contract lows.
On Thursday wheat opened steady in the Chicago contract but lower in Mpls and KC. Selling took charge in the overnight session pushing all three wheat exchanges lower during the night. Strength returned early in the day session with most of the support spilling over from strength in corn and soybeans. Late session pressure was due to reports that China is either cancelling or looking to resell numerous cargos of Australian wheat. Technically, wheat remains in the upper range and is still within striking distance of the next resistance level.
Target $6.35 to advance sales.
March MW support is at $5.85 while resistance is at $6.35.
For the week, Mar Mpls was at $5.9525 up 11.75 cents, Mar Chicago was at $5.44 up 14.25 cents, Mar KC was at $5.595 up 11.0 cents.