Wheat started the week by opening the overnight session mixed with Mpls and Chicago lower while KC was higher. By the end of the night session Mpls and KC had switched places as spread trading between the classes continued to be the main feature. Selling took control of all three of the exchanges once the day session started. News that Argentina has sold and shipped their first jag of wheat exports to China is decades pressured wheat early. Technically, wheat is not in a good place as Mpls is only 4 cents above contracts low while the winter wheat exchanges are 12 cents off their recent lows. Exports continue to be friendly for wheat, but increased competition from other major exporting countries is keeping a wet blanket on the US wheat markets.
Wheat started Tuesday’s session higher but turned to trade mixed by the end of the night. Mpls were holding small gains while winter wheat pushed lower. Early support was due to bargain hunting buying as all three wheat markets traded close to contract lows. Selling picked up steam once the day session started pushing Mpls and Chicago to new contract lows. KC is only 6 cents above its contract low. Reports that a peace deal between Ukraine and Russia is about 90% complete added selling pressure. The only issue left to work on is territory. CONAB is reporting Brazil’s wheat harvest is completed.
On Wednesday wheat opened steady to higher and continued to trade in that fashion throughout the night. Volume was thin and trading light as once again wheat only saw a trading range of 3 cents overnight. Early support came from technical buying as traders look to bounce off lows. Chicago turned lower once the day session got under way with pressure coming from reports that China cancelled their Nov 20th white wheat purchase. Losses were kept in check from reports that Iraq’s wheat production could be half of normal due to the severe drought the country is experiencing. KC was the only wheat exchange that managed to end with gains today as both Mpls and Chicago faded lower.
Wheat opened Thursday’s session steady to higher and continued to trade in that fashion throughout the night, but wheat was able to extend session gains in the day session. Early support came from technical buying as Mpls and KC bounced off lows. Chicago was the weakest link of the wheat exchanges due to pressure from Wednesday’s export sale cancellation by China. Gains were kept in check early from concerns that if peace talks are successful, Russian sanction will be removed, bringing more wheat to the market. Light support came from EU production estimate from Expana, which puts 2026 wheat production at 128.3 MMT vs 136.8 MMT last year. Sovecon is estimating the Russian wheat crop at 83.8 MMT, unchanged from previous estimate but 5 MMT below last year. Light support spilled over from a higher corn market.
March MIAX MW support is $5.65, March Chicago wheat support is $5.08, March KC support is $4.99.
For the week, March Mpls MIAX was at $5.78 up 2.25 cents, March Chicago was at $5.0975 down 19.5 cents, March KC was at $5.1525 down 2.75 cents.
Wheat Weekly Comments December 19
Wheat Weekly Comments December 19
Wheat started the week by opening the overnight session mixed with Mpls and Chicago lower while KC was higher. By the end of the night session Mpls and KC had switched places as spread trading between the classes continued to be the main feature. Selling took control of all three of the exchanges once the day session started. News that Argentina has sold and shipped their first jag of wheat exports to China is decades pressured wheat early. Technically, wheat is not in a good place as Mpls is only 4 cents above contracts low while the winter wheat exchanges are 12 cents off their recent lows. Exports continue to be friendly for wheat, but increased competition from other major exporting countries is keeping a wet blanket on the US wheat markets.
Wheat started Tuesday’s session higher but turned to trade mixed by the end of the night. Mpls were holding small gains while winter wheat pushed lower. Early support was due to bargain hunting buying as all three wheat markets traded close to contract lows. Selling picked up steam once the day session started pushing Mpls and Chicago to new contract lows. KC is only 6 cents above its contract low. Reports that a peace deal between Ukraine and Russia is about 90% complete added selling pressure. The only issue left to work on is territory. CONAB is reporting Brazil’s wheat harvest is completed.
On Wednesday wheat opened steady to higher and continued to trade in that fashion throughout the night. Volume was thin and trading light as once again wheat only saw a trading range of 3 cents overnight. Early support came from technical buying as traders look to bounce off lows. Chicago turned lower once the day session got under way with pressure coming from reports that China cancelled their Nov 20th white wheat purchase. Losses were kept in check from reports that Iraq’s wheat production could be half of normal due to the severe drought the country is experiencing. KC was the only wheat exchange that managed to end with gains today as both Mpls and Chicago faded lower.
Wheat opened Thursday’s session steady to higher and continued to trade in that fashion throughout the night, but wheat was able to extend session gains in the day session. Early support came from technical buying as Mpls and KC bounced off lows. Chicago was the weakest link of the wheat exchanges due to pressure from Wednesday’s export sale cancellation by China. Gains were kept in check early from concerns that if peace talks are successful, Russian sanction will be removed, bringing more wheat to the market. Light support came from EU production estimate from Expana, which puts 2026 wheat production at 128.3 MMT vs 136.8 MMT last year. Sovecon is estimating the Russian wheat crop at 83.8 MMT, unchanged from previous estimate but 5 MMT below last year. Light support spilled over from a higher corn market.
March MIAX MW support is $5.65, March Chicago wheat support is $5.08, March KC support is $4.99.
For the week, March Mpls MIAX was at $5.78 up 2.25 cents, March Chicago was at $5.0975 down 19.5 cents, March KC was at $5.1525 down 2.75 cents.