To start the week wheat opened steady to higher and extended session gains throughout the night but trimmed its gains once the day session started. Early support came from technical buying as all three wheat exchanges bounced off major support. News that Saudia Arabia bought 800 TMT of optional origin wheat over the weekend added support. Light support came from last week’s friendly USDA Dec Crop Production report. News is light and trading is thin as traders’ square positions ahead of the holiday.
On Tuesday wheat opened the night session mixed with Mpls lower while Chicago and KC started the night with gains. All three traded with small changes by the end of the night session. Thin light trading dominated the night session with all wheat exchanges seeing a tight 3 to 5 cent trading range. Technically March Mpls was able to close at $6.00 yesterday, but a turnaround Tuesday type action today pulled the market lower. Light support was due to SovEcon’s 2025 wheat production estimate for Russia, which is now estimated at 78.7 MMT vs USDA’s projection of 81.5 MMT. Gains were kept in check from France’s Ag Ministers projection for higher wheat acres. Estimates are calling for 4.5 million hectares of wheat acres, which is up 9% over last year, but 1% below the 5-year average. Late session pressure spilled over from the lower corn and soybean markets.
In Wednesday’s session wheat opened the overnight session steady to lower but recovered to trade with gains throughout most of the night. Early support came from world production concerns, especially in Russia. Light support spilled over from a stronger corn market. Thin light trading continued in the wheat exchange as traders looked for direction. Late session gains were trimmed as pressure from the lower soybean complex spilled over to cause both corn and wheat to fade into the red by the close.
Wheat opened Thursday’s session mixed with Mpls and Chicago lower while KC started higher. By the end of the night all of the wheat exchanges were lower. Early selling spilled over from a lower EU milling wheat contract. Strategie Grain is estimating EU wheat production for 2025 at 126.4 MMT vs 114.2 MMT last year, an increase of 11%. Once wheat broke support, technical selling pushed wheat down to post new lows in Mpls and Chicago. Thin light trading added selling pressure. In export news, South Korea bought 86.8 TMT of US milling wheat.
Target $6.85 to advance sales.
March MW support is at $5.85 while resistance is at $6.25.
For the week, Mar Mpls was at $5.9025 down 8.25 cents, Mar Chicago was at $5.33 down 19.25 cents, Mar KC was at $5.4475 down 12.25 cents.
Wheat Weekly Comments Dec 20
Wheat Weekly Comments Dec 20
To start the week wheat opened steady to higher and extended session gains throughout the night but trimmed its gains once the day session started. Early support came from technical buying as all three wheat exchanges bounced off major support. News that Saudia Arabia bought 800 TMT of optional origin wheat over the weekend added support. Light support came from last week’s friendly USDA Dec Crop Production report. News is light and trading is thin as traders’ square positions ahead of the holiday.
On Tuesday wheat opened the night session mixed with Mpls lower while Chicago and KC started the night with gains. All three traded with small changes by the end of the night session. Thin light trading dominated the night session with all wheat exchanges seeing a tight 3 to 5 cent trading range. Technically March Mpls was able to close at $6.00 yesterday, but a turnaround Tuesday type action today pulled the market lower. Light support was due to SovEcon’s 2025 wheat production estimate for Russia, which is now estimated at 78.7 MMT vs USDA’s projection of 81.5 MMT. Gains were kept in check from France’s Ag Ministers projection for higher wheat acres. Estimates are calling for 4.5 million hectares of wheat acres, which is up 9% over last year, but 1% below the 5-year average. Late session pressure spilled over from the lower corn and soybean markets.
In Wednesday’s session wheat opened the overnight session steady to lower but recovered to trade with gains throughout most of the night. Early support came from world production concerns, especially in Russia. Light support spilled over from a stronger corn market. Thin light trading continued in the wheat exchange as traders looked for direction. Late session gains were trimmed as pressure from the lower soybean complex spilled over to cause both corn and wheat to fade into the red by the close.
Wheat opened Thursday’s session mixed with Mpls and Chicago lower while KC started higher. By the end of the night all of the wheat exchanges were lower. Early selling spilled over from a lower EU milling wheat contract. Strategie Grain is estimating EU wheat production for 2025 at 126.4 MMT vs 114.2 MMT last year, an increase of 11%. Once wheat broke support, technical selling pushed wheat down to post new lows in Mpls and Chicago. Thin light trading added selling pressure. In export news, South Korea bought 86.8 TMT of US milling wheat.
Target $6.85 to advance sales.
March MW support is at $5.85 while resistance is at $6.25.
For the week, Mar Mpls was at $5.9025 down 8.25 cents, Mar Chicago was at $5.33 down 19.25 cents, Mar KC was at $5.4475 down 12.25 cents.