To start the week wheat opened steady to higher and extended session gains throughout the rest of the session. Early support came from support from a sharply lower US dollar. Weather reports added support as although the Southern Plains did receive good moisture over the weekend, most fell in the eastern regions of KS. Technical buying was also evident as Chicago wheat bounced off support, pulling the other wheat exchanges along for the ride. Position squaring ahead of Friday’s USDA data dump was also evident. This report will have something for both old and new crop wheat as the 2024 Final Crop Production estimate and Quarterly Grain Stocks will deal with old crop and the Winter Wheat Seedings Estimate will deal with new crop. March Mpls is back flirting with their $6.00 resistance level.
In Tuesday’s session wheat opened the overnight session lower then turned to trade mixed by the time the night session closed. All three wheat exchanges were able to firm and trade with gains once the day session started. Early support came from technical support as wheat tests resistance. Light support was due to reports that India’s wheat prices have rallied to record levels due to tight supplies and strong demand from millers. Position squaring ahead of Friday’s data dump was also evident. Most are not looking for wheat’s supply and demand numbers to bring much news to wheat, but the stocks estimate, and acreage are expected to be negative.
All of the wheat exchanges closed lower with Minneapolis seeing the largest losses on Wednesday. The higher US dollar and a lack of fresh news pulled wheat lower. South Korea bought 65,000 MT of feed wheat likely sourced from the US while Jordan is tendering for 120,000 MT of optional origin wheat. The CME group announced plans to add hard red spring wheat futures and options in the second quarter of 2025. Spring wheat is currently traded on the Minneapolis Grain Exchange which was sold to Miami International Holdings in late 2020. That group is planning on moving MGE wheat off the CME group and onto the MIAX Futures Onyx platform in the second quarter of 2025.
On Thursday wheat opened the session steady to lower and continued to trade in that fashion throughout the night session. Wheat lost its strength once the day session started. Technical selling and position squaring ahead of Friday’s USDA reports. Losses were kept in check by reports Tiawan bought 114,650 MT of US wheat.
USDA released their December Crop Progress report for winter wheat Monday afternoon. The report was friendly as wheat conditions dropped more than expected in key states. The report reported the following: CO: 70% g/e, up 2%, IL: 69% g/e, down 11%, KS: 47% g/e, down 9%, MT: 42% g/e, up 3%, and OK: 45% g/e, down 3%. TX did not report conditions.
Target $6.35 to advance sales.
March MW support is at $5.85 while resistance is at $6.25.
For the week, Mar Mpls was at $5.8425 up 6.5 cents, Mar Chicago was at $5.3075 up 1.5 cents, Mar KC was at $5.5175 up 12.75 cents.
Wheat Weekly Comments January 10
Wheat Weekly Comments January 10
To start the week wheat opened steady to higher and extended session gains throughout the rest of the session. Early support came from support from a sharply lower US dollar. Weather reports added support as although the Southern Plains did receive good moisture over the weekend, most fell in the eastern regions of KS. Technical buying was also evident as Chicago wheat bounced off support, pulling the other wheat exchanges along for the ride. Position squaring ahead of Friday’s USDA data dump was also evident. This report will have something for both old and new crop wheat as the 2024 Final Crop Production estimate and Quarterly Grain Stocks will deal with old crop and the Winter Wheat Seedings Estimate will deal with new crop. March Mpls is back flirting with their $6.00 resistance level.
In Tuesday’s session wheat opened the overnight session lower then turned to trade mixed by the time the night session closed. All three wheat exchanges were able to firm and trade with gains once the day session started. Early support came from technical support as wheat tests resistance. Light support was due to reports that India’s wheat prices have rallied to record levels due to tight supplies and strong demand from millers. Position squaring ahead of Friday’s data dump was also evident. Most are not looking for wheat’s supply and demand numbers to bring much news to wheat, but the stocks estimate, and acreage are expected to be negative.
All of the wheat exchanges closed lower with Minneapolis seeing the largest losses on Wednesday. The higher US dollar and a lack of fresh news pulled wheat lower. South Korea bought 65,000 MT of feed wheat likely sourced from the US while Jordan is tendering for 120,000 MT of optional origin wheat. The CME group announced plans to add hard red spring wheat futures and options in the second quarter of 2025. Spring wheat is currently traded on the Minneapolis Grain Exchange which was sold to Miami International Holdings in late 2020. That group is planning on moving MGE wheat off the CME group and onto the MIAX Futures Onyx platform in the second quarter of 2025.
On Thursday wheat opened the session steady to lower and continued to trade in that fashion throughout the night session. Wheat lost its strength once the day session started. Technical selling and position squaring ahead of Friday’s USDA reports. Losses were kept in check by reports Tiawan bought 114,650 MT of US wheat.
USDA released their December Crop Progress report for winter wheat Monday afternoon. The report was friendly as wheat conditions dropped more than expected in key states. The report reported the following: CO: 70% g/e, up 2%, IL: 69% g/e, down 11%, KS: 47% g/e, down 9%, MT: 42% g/e, up 3%, and OK: 45% g/e, down 3%. TX did not report conditions.
Target $6.35 to advance sales.
March MW support is at $5.85 while resistance is at $6.25.
For the week, Mar Mpls was at $5.8425 up 6.5 cents, Mar Chicago was at $5.3075 up 1.5 cents, Mar KC was at $5.5175 up 12.75 cents.