To start the week wheat opened the session higher with early support spilling over from the higher corn market. War concerns in the Black Sea added support. Support was also due to last week’s strong export inspections estimate, which was at the top of expectations. Technical selling pulled wheat off session higher as wheat uncovered sell order once trading to resistance lines. Wheat is playing the follower role now looking for direction from corn.
In Tuesday’s session wheat opened with each of the exchanges going in their own direction (Mpls lower, Chicago higher, KC steady). But selling took charge early and expanded throughout the night session. Technical selling and profit taking were the main pressure points. Rumors that Ukraine is trying to get Russia to agree to a ceasefire until the summer of 2027 added pressure. Reports of drone attacks on some Ukraine sites helped trim losses during the day session. Support also spilled over from the other grains as both corn and soybeans posted strong rallies after weaker starts.
Wheat opened Wednesday’s session mixed with MW and KC lower while Chicago was higher. By the end of the night session all three wheat exchanges were posting strong gains. The support continued to give wheat traders an excuse to push wheat once the day session got under way. Reports that Russia is going to intensify attacks on Kyiv and critical infrastructure after determining that negotiations have failed. There is even talk of possible use of tactical nuclear weapons as last resort. That sent wheat sharply higher and even pushed Chicago to end limit up. This might be a time to be cautious as wheat rallies off of headlines have not worked well, and today wheat was definitely chasing headlines.
Wheat opened Thursday’s session mixed and continued to trade in that fashion throughout the night. Mpls was the strong market while the winter wheat exchanges started lower. By the start of the day session, all three of the wheat exchanges turned higher and extended session gains. Early selling was tied to profit taking and position squaring ahead of month end, which is also first notice day for the Sept futures. The mains supporting factor continues to come from Putin’s comments referring to Russia’s decision to escalate the war with Ukraine as they see no hope for beneficial peace talks. Russia followed that comment with a series of drone attacks on Kyiv, important Black Sea port facilities, and infrastructure within Ukraine.
Technically Dec Mpls wheat has rallied from its June 30 low of $6.25 to their Aug 26 high of $7.555, which is $1.305.
Sept Mpls support is at $6.45, Sept Chicago wheat support is $6.27; Sept KC support is $6.65.
For the week, Sept MIAX was at $7.4525 up 47.0 cents, Sept Chicago was at $7.67 up 85.5 cents, Sept KC was at $8.2775 up 71.5 cents.
Wheat Weekly Comments August 28
Wheat Weekly Comments August 28
To start the week wheat opened the session higher with early support spilling over from the higher corn market. War concerns in the Black Sea added support. Support was also due to last week’s strong export inspections estimate, which was at the top of expectations. Technical selling pulled wheat off session higher as wheat uncovered sell order once trading to resistance lines. Wheat is playing the follower role now looking for direction from corn.
In Tuesday’s session wheat opened with each of the exchanges going in their own direction (Mpls lower, Chicago higher, KC steady). But selling took charge early and expanded throughout the night session. Technical selling and profit taking were the main pressure points. Rumors that Ukraine is trying to get Russia to agree to a ceasefire until the summer of 2027 added pressure. Reports of drone attacks on some Ukraine sites helped trim losses during the day session. Support also spilled over from the other grains as both corn and soybeans posted strong rallies after weaker starts.
Wheat opened Wednesday’s session mixed with MW and KC lower while Chicago was higher. By the end of the night session all three wheat exchanges were posting strong gains. The support continued to give wheat traders an excuse to push wheat once the day session got under way. Reports that Russia is going to intensify attacks on Kyiv and critical infrastructure after determining that negotiations have failed. There is even talk of possible use of tactical nuclear weapons as last resort. That sent wheat sharply higher and even pushed Chicago to end limit up. This might be a time to be cautious as wheat rallies off of headlines have not worked well, and today wheat was definitely chasing headlines.
Wheat opened Thursday’s session mixed and continued to trade in that fashion throughout the night. Mpls was the strong market while the winter wheat exchanges started lower. By the start of the day session, all three of the wheat exchanges turned higher and extended session gains. Early selling was tied to profit taking and position squaring ahead of month end, which is also first notice day for the Sept futures. The mains supporting factor continues to come from Putin’s comments referring to Russia’s decision to escalate the war with Ukraine as they see no hope for beneficial peace talks. Russia followed that comment with a series of drone attacks on Kyiv, important Black Sea port facilities, and infrastructure within Ukraine.
Technically Dec Mpls wheat has rallied from its June 30 low of $6.25 to their Aug 26 high of $7.555, which is $1.305.
Sept Mpls support is at $6.45, Sept Chicago wheat support is $6.27; Sept KC support is $6.65.
For the week, Sept MIAX was at $7.4525 up 47.0 cents, Sept Chicago was at $7.67 up 85.5 cents, Sept KC was at $8.2775 up 71.5 cents.