The wheat markets all climbed higher throughout Monday’s session and closed with strong gains. Chi saw the biggest gains. Wheat didn’t see much good news in Friday’s reports. The winter wheat seedings report was negative as acres were higher than expected for all types of winter wheat. But wheat saw gains today on spillover support from corn and soybeans. Wheat also was supported by the idea that tight corn stocks may lead to more wheat being used as feed. Technical buying added to the gains. Sovecon estimates Russia’s January wheat exports at 73.5 MB, a 41% drop from December and the lowest monthly total in over a year.
In Tuesday’s session wheat opened with each exchange going in its own direction (MW was lower, Chicago higher and KC steady). By the end of the night session all of the grains were posting small losses. Early selling was tied to profit taking after seeing decent gains last week and yesterday. But wheat was able to overcome the overnight pressure and turn higher with support coming from weather forecasts calling for cold temps to dip into the southern regions of the Southern Plains. Most of the wheat has some level of snow cover so concerns are limited. Wheat faded gains late in the session due to spill over selling from the lower corn and soybean complex as well as from reports Ukraine’s wheat exports to date are running at 10.26 MMT vs 8.19 MMT last year.
On Wednesday wheat opened the overnight session mixed with Mpls and KC lower while Chicago started higher. By the end of the night all three wheat exchanges were trading steady to lower. Early selling was tied to expectations that this weekend’s forecasted artic blast will not result in much crop damage due to snow cover. Wheat managed to turn mixed in the day session with support spilling over from the higher corn market. By the close wheat was posting minor losses as traders look for direction.
In Thursday’s session wheat opened the overnight session steady to lower and extended session loses through about midsession of the day session. Early selling was tied to profit taking and position squaring ahead of the long weekend. Losses were kept in check from last week’s better than expected export sales estimate and also from reports Japan bought US week in their weekly tender. Reports Russia has 50% lower stocks than last year trimmed losses. Wheat seemed to be comfortable dropping to post 9 cent losses and waffled around that region for the rest of the session. Technically no damage was done to wheat today, but then again, most exchanges are close to their recent lows.
Target $6.35 to advance sales.
March MW support is at $5.85 while resistance is at $6.35.
For the week, Mar Mpls was at $5.835 down 0.75 cent, Mar Chicago was at $5.3875 up 8.0 cents, Mar KC was at $5.485 down 3.25 cents.
Wheat Weekly Comments January 17
Wheat Weekly Comments January 17
The wheat markets all climbed higher throughout Monday’s session and closed with strong gains. Chi saw the biggest gains. Wheat didn’t see much good news in Friday’s reports. The winter wheat seedings report was negative as acres were higher than expected for all types of winter wheat. But wheat saw gains today on spillover support from corn and soybeans. Wheat also was supported by the idea that tight corn stocks may lead to more wheat being used as feed. Technical buying added to the gains. Sovecon estimates Russia’s January wheat exports at 73.5 MB, a 41% drop from December and the lowest monthly total in over a year.
In Tuesday’s session wheat opened with each exchange going in its own direction (MW was lower, Chicago higher and KC steady). By the end of the night session all of the grains were posting small losses. Early selling was tied to profit taking after seeing decent gains last week and yesterday. But wheat was able to overcome the overnight pressure and turn higher with support coming from weather forecasts calling for cold temps to dip into the southern regions of the Southern Plains. Most of the wheat has some level of snow cover so concerns are limited. Wheat faded gains late in the session due to spill over selling from the lower corn and soybean complex as well as from reports Ukraine’s wheat exports to date are running at 10.26 MMT vs 8.19 MMT last year.
On Wednesday wheat opened the overnight session mixed with Mpls and KC lower while Chicago started higher. By the end of the night all three wheat exchanges were trading steady to lower. Early selling was tied to expectations that this weekend’s forecasted artic blast will not result in much crop damage due to snow cover. Wheat managed to turn mixed in the day session with support spilling over from the higher corn market. By the close wheat was posting minor losses as traders look for direction.
In Thursday’s session wheat opened the overnight session steady to lower and extended session loses through about midsession of the day session. Early selling was tied to profit taking and position squaring ahead of the long weekend. Losses were kept in check from last week’s better than expected export sales estimate and also from reports Japan bought US week in their weekly tender. Reports Russia has 50% lower stocks than last year trimmed losses. Wheat seemed to be comfortable dropping to post 9 cent losses and waffled around that region for the rest of the session. Technically no damage was done to wheat today, but then again, most exchanges are close to their recent lows.
Target $6.35 to advance sales.
March MW support is at $5.85 while resistance is at $6.35.
For the week, Mar Mpls was at $5.835 down 0.75 cent, Mar Chicago was at $5.3875 up 8.0 cents, Mar KC was at $5.485 down 3.25 cents.