After the long weekend wheat opened the overnight session lower and extended session losses early. But wheat managed to shake off it early selling pressure and push higher after the start of the day session. Technical buying pressured wheat early as traders looked to take profits off the table after Friday’s strong performance. Reports of countries looking to even up their trading deficit with the US added support as Vietnam, China, India, Taiwan, and Japan have all come forward saying they are interested in buying more US ag products in an attempt to balance the import export ledger with the US. IKAR lowered Russia’s exportable bushels of wheat from 43 MMT to 39 MMT.
On Wednesday wheat opened the session mixed with MW and KC lower while Chicago was higher. By the end of the night session, the wheat exchanges reversed rolls and MW and KC posting gains while Chicago was lower. Early support came from weather forecasts calling for another round of extremely cold temps to drop down to the winter wheat belt. Support was also due to reports that TX’s wheat crop dropped 3% to 33% g/e last week. Wheat started to fade its gains around midsession with early selling due to farmer selling as well as from technical selling as sell orders were triggered once wheat traded to 3-month highs. Traders were also starting to second guess any expectation that the current cold snap will result in any damage to the winter wheat.
In Thursday’s session wheat opened with each exchange going in its own direction. By the end of the night session Mpls was posting solid gains while the wheat exchanges posted modest gains. Winter wheat lost its gains once the day session started with selling tied to improving wheat conditions in the US. Cold temps are coming to an end and are expected to be replaced with a two-week dry run. Talk of a possible end to the Black Sea war had no impact on the trade. Mpls was supported by the need to hold acreage for 2025. Taiwan was in and bought 102 TMT of mixed wheat varieties.
Target $6.65 to advance sales.
March MW support is at $5.85 while resistance is at $6.65.
For the week, Mar Mpls was at $6.3175 down 1.75 cents, Mar Chicago was at $5.90 down 10.0 cents, Mar KC was at $6.0925 down 12.0 cents.
Wheat Weekly Comments February 21
Wheat Weekly Comments February 21
After the long weekend wheat opened the overnight session lower and extended session losses early. But wheat managed to shake off it early selling pressure and push higher after the start of the day session. Technical buying pressured wheat early as traders looked to take profits off the table after Friday’s strong performance. Reports of countries looking to even up their trading deficit with the US added support as Vietnam, China, India, Taiwan, and Japan have all come forward saying they are interested in buying more US ag products in an attempt to balance the import export ledger with the US. IKAR lowered Russia’s exportable bushels of wheat from 43 MMT to 39 MMT.
On Wednesday wheat opened the session mixed with MW and KC lower while Chicago was higher. By the end of the night session, the wheat exchanges reversed rolls and MW and KC posting gains while Chicago was lower. Early support came from weather forecasts calling for another round of extremely cold temps to drop down to the winter wheat belt. Support was also due to reports that TX’s wheat crop dropped 3% to 33% g/e last week. Wheat started to fade its gains around midsession with early selling due to farmer selling as well as from technical selling as sell orders were triggered once wheat traded to 3-month highs. Traders were also starting to second guess any expectation that the current cold snap will result in any damage to the winter wheat.
In Thursday’s session wheat opened with each exchange going in its own direction. By the end of the night session Mpls was posting solid gains while the wheat exchanges posted modest gains. Winter wheat lost its gains once the day session started with selling tied to improving wheat conditions in the US. Cold temps are coming to an end and are expected to be replaced with a two-week dry run. Talk of a possible end to the Black Sea war had no impact on the trade. Mpls was supported by the need to hold acreage for 2025. Taiwan was in and bought 102 TMT of mixed wheat varieties.
Target $6.65 to advance sales.
March MW support is at $5.85 while resistance is at $6.65.
For the week, Mar Mpls was at $6.3175 down 1.75 cents, Mar Chicago was at $5.90 down 10.0 cents, Mar KC was at $6.0925 down 12.0 cents.