To start the week wheat opened the session steady to lower with early selling tied to profit taking and from the squaring of positions at the start of a new month. All three wheat exchanges were able to shake off the early selling pressure and turn higher with support coming from news that China is in looking to buy US wheat. If realized, this would be the first wheat purchase for China in over a year. Light support was also due to spill over support from strength from corn and soybeans. Light support also came from last week’s export inspections estimate, which shows wheat shipments 21% above last year’s pace. Technically wheat continues to lag the other grains, but seasonally wheat basis improves this time of year. The new daily trading limit for the winter wheat contracts is 35 cents while MIAX Mpls wheat daily limit remains at 60 cents.
In Tuesday’s session wheat opened lower but managed to recover and traded steady to higher through the overnight session. Early support was due to continued talk of wheat sales to China. Mpls lost their gains once the day session got under way due to production concerns and lack of demand. Winter wheat held its gains throughout the day session due to expectations of China business. Reuters are estimating winter wheat planting progress at 91% complete vs 84% last week. Wheat’s crop condition rating is estimated at 52% g/e. CONAB is estimating Brazil’s wheat harvest at 51% complete vs 69% last year and vs 60% average.
Wheat opened Wednesday’s session lower but managed to firm and trade close to steady throughout most of the night session. Early selling was tied to profit taking. Losses were trimmed on the thought that US sold China wheat. Light support was due to reports China did lift their 15% import tariff on wheat. Wheat continues to be a follower to the other grains as although wheat exports are solid vs the past 9 years, increasing world production estimates continue to throw a wet blanket on wheat.
In Thursday’s session Wheat opened lower and extended losses throughout the night and into the day. Early selling spilled over from the other grains, which were also lower. Buy the rumor sell the fact type trading was also evident as China confirmed their purchase of 2 cargos of US wheat, one cargo for SRW and one of HRS. Technical selling was also evident as winter wheat faded lower after trading to 3-month highs.
Dec MIAX MW support is $5.45, Dec CME MW support is $5.15, Dec Chicago wheat support is $5.00, Dec KC support is $5.00.
For the week, Dec Mpls MIAX was at $5.58 up 5.0 cents, Dec Chicago was at $5.2775 down 6.25 cents, Dec KC was at $5.1925 down 5.25 cents.
Wheat Weekly Comments November 7
Wheat Weekly Comments November 7
To start the week wheat opened the session steady to lower with early selling tied to profit taking and from the squaring of positions at the start of a new month. All three wheat exchanges were able to shake off the early selling pressure and turn higher with support coming from news that China is in looking to buy US wheat. If realized, this would be the first wheat purchase for China in over a year. Light support was also due to spill over support from strength from corn and soybeans. Light support also came from last week’s export inspections estimate, which shows wheat shipments 21% above last year’s pace. Technically wheat continues to lag the other grains, but seasonally wheat basis improves this time of year. The new daily trading limit for the winter wheat contracts is 35 cents while MIAX Mpls wheat daily limit remains at 60 cents.
In Tuesday’s session wheat opened lower but managed to recover and traded steady to higher through the overnight session. Early support was due to continued talk of wheat sales to China. Mpls lost their gains once the day session got under way due to production concerns and lack of demand. Winter wheat held its gains throughout the day session due to expectations of China business. Reuters are estimating winter wheat planting progress at 91% complete vs 84% last week. Wheat’s crop condition rating is estimated at 52% g/e. CONAB is estimating Brazil’s wheat harvest at 51% complete vs 69% last year and vs 60% average.
Wheat opened Wednesday’s session lower but managed to firm and trade close to steady throughout most of the night session. Early selling was tied to profit taking. Losses were trimmed on the thought that US sold China wheat. Light support was due to reports China did lift their 15% import tariff on wheat. Wheat continues to be a follower to the other grains as although wheat exports are solid vs the past 9 years, increasing world production estimates continue to throw a wet blanket on wheat.
In Thursday’s session Wheat opened lower and extended losses throughout the night and into the day. Early selling spilled over from the other grains, which were also lower. Buy the rumor sell the fact type trading was also evident as China confirmed their purchase of 2 cargos of US wheat, one cargo for SRW and one of HRS. Technical selling was also evident as winter wheat faded lower after trading to 3-month highs.
Dec MIAX MW support is $5.45, Dec CME MW support is $5.15, Dec Chicago wheat support is $5.00, Dec KC support is $5.00.
For the week, Dec Mpls MIAX was at $5.58 up 5.0 cents, Dec Chicago was at $5.2775 down 6.25 cents, Dec KC was at $5.1925 down 5.25 cents.