Wheat Market Recap: 13 September 2011
Dec Wheat finished down 25.25 at 702, 30 off the high and 6 up from the low.
Mar Wheat closed down 25.25 at 737. This was 5.25 up from the low and 29 off the high.
Dec Wheat closed sharply lower on the session and down for the 6th session in a row.
The market has now traded at or below the previous day's lows for the 10th session in a row on a move to the lowest level since August 9th.
Funds were noted sellers again today and talk of better rains for the plains next week which might help boost winter wheat plantings helped to pressure. Weakness in corn and a continued concern that US Wheat will struggle to compete with Russian and Ukrainian Wheat on the world export market helped to pressure. The USDA news yesterday of adjustments higher in US and world ending stocks added to the negative tone.
Outside market forces are somewhat positive but weakness in Corn and Soybeans were seen as negative forces.
Libya bought 50,000 tons of Russian milling Wheat overnight. Talk that winter Wheat areas in the central and southern plains could see rain amounts of 1-2 inches next week was seen as a negative force to spark some of the selling.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.