To start the week wheat opened the session mixed with Mpls steady while the winter wheat exchanges started lower. Early selling was tied to news that the US and Iran have agreed to a memo of understanding to end the war. In reality the memo stops the fighting, reopens the Strait, and lifts sanctions, and it extends the cease fire 60 days and continues negotiations 60 days. Light selling was due to expectations that the afternoon’s crop progress report will be negative and show improving conditions for both winter wheat and spring wheat. Friday’s COT report shows the funds are not net short either Chicago and KC but still long Mpls. BAGE is estimating Argentina’s wheat planting progress at 44% complete and expects acreage to decline 3% year over year.
In Tuesday’s session wheat opened steady to lower and saw selling pressure extend losses once the night session got under way. Early selling was tied to Monday afternoon’s negative Crop Progress report. The report estimated winter wheat harvest pace 5% ahead of expectations while spring wheat started to show heading progress. Crop ratings for both were better than expected as winter wheat improved 2% while spring wheat improved 3%.
Light selling was tied to private analyst estimates for planted acreage. The group has all wheat acreage at 43.91 million vs 43.8 million last month. Other spring wheat acreage is estimated at 9.55 million vs 9.415 million in March. Wheat was able to shake off the selling pressure once the day session started, wheat gapped higher and traded with solid gains. Technical buying due to bargain hunting was part of the support. The other was due to rumors of demand. Wheat ended the session mixed with gains in Chicago and losses in KC and Mpls.
Wheat opened Wednesday’s session mixed with Mpls and Chicago lower while KC was higher. All three wheat exchanges were able to shake off the early selling pressure and push to trade with gains by the end of the night session. Gains were expanded once the day session started with all three rallying higher throughout the session. Support was due to quality concerns as heavy rain continues to delay harvest of the SRW wheat crop, which in turn is resulting in the crop losing quality. Technical buying added support as wheat bounced off major support. Profit taking and position squaring ahead of the weekend also added to the gains.
July MIAX MW support is $6.12, Sept MIAX MW support is at $6.35, July Chicago wheat support is $5.78, July KC support is $6.12.
For the week, July Mpls MIAX was at $6.23 up 4.75 cents while Sept was at $6.4775 up 5.75 cents, July Chicago was at $6.0575 up 21.25 cents, July KC was at $6.44 up 9.5 cents.
Wheat Weekly Comments June 18
Wheat Weekly Comments June 18
To start the week wheat opened the session mixed with Mpls steady while the winter wheat exchanges started lower. Early selling was tied to news that the US and Iran have agreed to a memo of understanding to end the war. In reality the memo stops the fighting, reopens the Strait, and lifts sanctions, and it extends the cease fire 60 days and continues negotiations 60 days. Light selling was due to expectations that the afternoon’s crop progress report will be negative and show improving conditions for both winter wheat and spring wheat. Friday’s COT report shows the funds are not net short either Chicago and KC but still long Mpls. BAGE is estimating Argentina’s wheat planting progress at 44% complete and expects acreage to decline 3% year over year.
In Tuesday’s session wheat opened steady to lower and saw selling pressure extend losses once the night session got under way. Early selling was tied to Monday afternoon’s negative Crop Progress report. The report estimated winter wheat harvest pace 5% ahead of expectations while spring wheat started to show heading progress. Crop ratings for both were better than expected as winter wheat improved 2% while spring wheat improved 3%.
Light selling was tied to private analyst estimates for planted acreage. The group has all wheat acreage at 43.91 million vs 43.8 million last month. Other spring wheat acreage is estimated at 9.55 million vs 9.415 million in March. Wheat was able to shake off the selling pressure once the day session started, wheat gapped higher and traded with solid gains. Technical buying due to bargain hunting was part of the support. The other was due to rumors of demand. Wheat ended the session mixed with gains in Chicago and losses in KC and Mpls.
Wheat opened Wednesday’s session mixed with Mpls and Chicago lower while KC was higher. All three wheat exchanges were able to shake off the early selling pressure and push to trade with gains by the end of the night session. Gains were expanded once the day session started with all three rallying higher throughout the session. Support was due to quality concerns as heavy rain continues to delay harvest of the SRW wheat crop, which in turn is resulting in the crop losing quality. Technical buying added support as wheat bounced off major support. Profit taking and position squaring ahead of the weekend also added to the gains.
July MIAX MW support is $6.12, Sept MIAX MW support is at $6.35, July Chicago wheat support is $5.78, July KC support is $6.12.
For the week, July Mpls MIAX was at $6.23 up 4.75 cents while Sept was at $6.4775 up 5.75 cents, July Chicago was at $6.0575 up 21.25 cents, July KC was at $6.44 up 9.5 cents.