To start the week wheat opened the overnight session mixed with Mpls lower while the winter wheat exchanges started with gains. The strength from the winter wheat, and other grains, spill over to push all three wheat exchanges higher by the end of the night session. Technical buying was also noted as wheat traded to significant support on Friday. Production concerns in Argentina and Australia added support. Reports of slow planting progress in the Black Sea also added support. Good rain fell in the Southern Plains over the weekend, but it seems like the market doesn’t seem to care at this point.
On Tuesday wheat opened lower across the board but managed to maintain small losses throughout the night session. Early selling was tied to reports of good rains in the Southern Plains. Selling was also tied to Monday afternoon’s Crop Progress report, which is estimating average planting progress for winter wheat and a near wrap to spring wheat harvest. Losses were trimmed once the day session started with most of the support spilling over from the higher soybean and corn market. Light support was due to production concerns in the Black Sea, Russia, Australia, and Argentina. But wheat was not able to hold gains and turned lower late in the session due to technical selling.
In Wednesday’s session wheat opened the overnight session mixed with each wheat exchange going its own direction (Mpls lower, Chicago higher, KC steady). But it did not take wheat long for all three of the exchanges to turn and post losses and extend those losses throughout the night. Early selling was tied to continued poor demand for US wheat. Even with a low US dollar and production concerns in the EU and the Black Sea region, it continues to be tough for the US to attract buyers for wheat. Losses were trimmed once the day session started with support coming from weather forecasts calling for little to no rain for a majority of the Plains over the next 15 days. Late session support also spilled over from the other grains as both soybeans and corn saw gains return once the day session got going. Production concerns in the EU, Black Sea, Argentina, and Australia added support. An escalation in both the Ukraine Russian war and Israel Lebanon war added strength.
On Thursday wheat opened mixed with Mpls lower while the two winter wheat exchanges pushed higher. By the time the night session was coming to a close all three of the wheat exchanges were higher. Early support was due to weather forecasts calling for hot and dry conditions for most of the US. Weather concerns are not just limited to the US as the Black Sea region, Russia, Australia, and Argentina are all seeing drier conditions that are continuing to cause production issues. IKAR lowered their wheat production estimate for Russia to 81.8 MMT vs 82.2 MMT previously. Sovecon is reporting Russia wheat planting at the slowest pace in 11 years due to the dry conditions. Reports have most of Russia’s wheat region only seeing 20% of normal rainfall. Wheat couldn’t hold its gains though as selling returned around midsession with technical selling and profit taking the main pressure. Technical selling was also evident once wheat failed to cross above resistance.
Target $6.65 Dec Mpls to advance sales..
Dec Mpls wheat support is at $5.95 while resistance is at $6.65.
For the week, Dec Mpls was at $6.0825 up 0.25 cent, Dec Chicago was at $5.80 up 11.5 cents, Dec KC was at $5.7675 up 12.75 cents.
Wheat Weekly Comments Sept 27
Wheat Weekly Comments Sept 27
To start the week wheat opened the overnight session mixed with Mpls lower while the winter wheat exchanges started with gains. The strength from the winter wheat, and other grains, spill over to push all three wheat exchanges higher by the end of the night session. Technical buying was also noted as wheat traded to significant support on Friday. Production concerns in Argentina and Australia added support. Reports of slow planting progress in the Black Sea also added support. Good rain fell in the Southern Plains over the weekend, but it seems like the market doesn’t seem to care at this point.
On Tuesday wheat opened lower across the board but managed to maintain small losses throughout the night session. Early selling was tied to reports of good rains in the Southern Plains. Selling was also tied to Monday afternoon’s Crop Progress report, which is estimating average planting progress for winter wheat and a near wrap to spring wheat harvest. Losses were trimmed once the day session started with most of the support spilling over from the higher soybean and corn market. Light support was due to production concerns in the Black Sea, Russia, Australia, and Argentina. But wheat was not able to hold gains and turned lower late in the session due to technical selling.
In Wednesday’s session wheat opened the overnight session mixed with each wheat exchange going its own direction (Mpls lower, Chicago higher, KC steady). But it did not take wheat long for all three of the exchanges to turn and post losses and extend those losses throughout the night. Early selling was tied to continued poor demand for US wheat. Even with a low US dollar and production concerns in the EU and the Black Sea region, it continues to be tough for the US to attract buyers for wheat. Losses were trimmed once the day session started with support coming from weather forecasts calling for little to no rain for a majority of the Plains over the next 15 days. Late session support also spilled over from the other grains as both soybeans and corn saw gains return once the day session got going. Production concerns in the EU, Black Sea, Argentina, and Australia added support. An escalation in both the Ukraine Russian war and Israel Lebanon war added strength.
On Thursday wheat opened mixed with Mpls lower while the two winter wheat exchanges pushed higher. By the time the night session was coming to a close all three of the wheat exchanges were higher. Early support was due to weather forecasts calling for hot and dry conditions for most of the US. Weather concerns are not just limited to the US as the Black Sea region, Russia, Australia, and Argentina are all seeing drier conditions that are continuing to cause production issues. IKAR lowered their wheat production estimate for Russia to 81.8 MMT vs 82.2 MMT previously. Sovecon is reporting Russia wheat planting at the slowest pace in 11 years due to the dry conditions. Reports have most of Russia’s wheat region only seeing 20% of normal rainfall. Wheat couldn’t hold its gains though as selling returned around midsession with technical selling and profit taking the main pressure. Technical selling was also evident once wheat failed to cross above resistance.
Target $6.65 Dec Mpls to advance sales..
Dec Mpls wheat support is at $5.95 while resistance is at $6.65.
For the week, Dec Mpls was at $6.0825 up 0.25 cent, Dec Chicago was at $5.80 up 11.5 cents, Dec KC was at $5.7675 up 12.75 cents.