Wheat started the week by gapping higher on the opening bell and then extended session gains throughout the night session and into the day. Early support came from news Biden has agreed to allow Ukraine to use long range missiles in the war with Russia. This will allow Ukraine to send missiles deeper into Russian territories. Gains were trimmed once USDA released the weekly export shipments estimate as it once again came in below expectations and at a new marketing year low. Technical buying was also evident as wheat bounced off contract lows. Light support came from reports Russian wheat export values were $2 lower last week according to IKAR. SovEcon is seeing export prices down $3 to $4.
In Tuesday’s session each wheat exchange opened the session in a different direction last night with Mpls steady, Chicago higher, and KC lower. But all three were able to brush off early pressure with all three posting gains throughout the session. Early selling continues to come from an escalation in the Black Sea war as now that Ukraine has access to long range missiles, they have the ability to strike targets deeper in Russia, which then did overnight. A weaker US dollar and technical buying added to the support. Gains were kept in check from spill over pressure from the lower soybeans. Light selling was due to a better-than-expected crop condition rating in Monday’s Crop Progress report. Winter wheat conditions improved 5% last week, putting the crop at 49% g/e, 3% higher than expected and the best rating in 5 years.
On Wednesday wheat opened the overnight session lower and extended session losses throughout the night. Early selling was tied position squaring and profit taking ahead of next week, which is also the start of the holiday season and thin light trading. Light selling spilled over from the other grains as corn opened on the defense while soybeans faded after the opening bell. A stronger US dollar added pressure early, but once the day session started, wheat found strength and slowly pushed higher. Wednesday’s gains were huge, but a close in the black is better than one in the red. Underlying support continues to come from an escalation in the Black Sea war.
In Thursday’s session wheat opened, the overnight session mixed with the winter wheat exchanges steady while Mpls was lower. All three exchanges were able to brush off the early selling pressure and push higher in the overnight session. Early support came from another escalation in the Black Sea war, as Russia started to use long range missiles against Ukraine. A strong export sales estimated added support early as last week’s export sales pace was at the top of expectations. But wheat faded once the day session started due to the lack of news as well as from position squaring ahead of next week (short trading week due to Thanksgiving). A stronger US dollar added pressure.
Target $6.65 Dec Mpls to advance sales.
Dec Mpls wheat support is at $5.65 while resistance is at $6.65.
For the week, Dec Mpls was at $5.86 up 13.75 cents, Dec Chicago was at $5.4425 up 7.75 cents, Dec KC was at $5.5425 up 14.25 cents.
Wheat Weekly Comments Nov 22
Wheat Weekly Comments Nov 22
Wheat started the week by gapping higher on the opening bell and then extended session gains throughout the night session and into the day. Early support came from news Biden has agreed to allow Ukraine to use long range missiles in the war with Russia. This will allow Ukraine to send missiles deeper into Russian territories. Gains were trimmed once USDA released the weekly export shipments estimate as it once again came in below expectations and at a new marketing year low. Technical buying was also evident as wheat bounced off contract lows. Light support came from reports Russian wheat export values were $2 lower last week according to IKAR. SovEcon is seeing export prices down $3 to $4.
In Tuesday’s session each wheat exchange opened the session in a different direction last night with Mpls steady, Chicago higher, and KC lower. But all three were able to brush off early pressure with all three posting gains throughout the session. Early selling continues to come from an escalation in the Black Sea war as now that Ukraine has access to long range missiles, they have the ability to strike targets deeper in Russia, which then did overnight. A weaker US dollar and technical buying added to the support. Gains were kept in check from spill over pressure from the lower soybeans. Light selling was due to a better-than-expected crop condition rating in Monday’s Crop Progress report. Winter wheat conditions improved 5% last week, putting the crop at 49% g/e, 3% higher than expected and the best rating in 5 years.
On Wednesday wheat opened the overnight session lower and extended session losses throughout the night. Early selling was tied position squaring and profit taking ahead of next week, which is also the start of the holiday season and thin light trading. Light selling spilled over from the other grains as corn opened on the defense while soybeans faded after the opening bell. A stronger US dollar added pressure early, but once the day session started, wheat found strength and slowly pushed higher. Wednesday’s gains were huge, but a close in the black is better than one in the red. Underlying support continues to come from an escalation in the Black Sea war.
In Thursday’s session wheat opened, the overnight session mixed with the winter wheat exchanges steady while Mpls was lower. All three exchanges were able to brush off the early selling pressure and push higher in the overnight session. Early support came from another escalation in the Black Sea war, as Russia started to use long range missiles against Ukraine. A strong export sales estimated added support early as last week’s export sales pace was at the top of expectations. But wheat faded once the day session started due to the lack of news as well as from position squaring ahead of next week (short trading week due to Thanksgiving). A stronger US dollar added pressure.
Target $6.65 Dec Mpls to advance sales.
Dec Mpls wheat support is at $5.65 while resistance is at $6.65.
For the week, Dec Mpls was at $5.86 up 13.75 cents, Dec Chicago was at $5.4425 up 7.75 cents, Dec KC was at $5.5425 up 14.25 cents.