Wheat Market Recap
Dec Wheat finished down 6.25 at 636.25, 10.75 off the high and 2.25 up from the low.
Mar Wheat closed down 4.75 at 672.75. This was + 3 from the low and 9 off the high.
Dec Wheat closed lower on the session and pushed to a new low for the day late in the session.
A firm USD and increased demand concerns offset the inflationary tilt to energy and metal markets as there is increased anxiety over the European debt issues and commodity market action was mostly weak and followed the stock market lower.
Like the other grains, the market was expected to open higher on the day but a turn up in the USD and a sharp break in the US stock market helped to pressure.
Dry weather for parts of the southern plains remains as a supportive factor and Ukraine winter Wheat production is also in question and these weather factors continue to provide some underlying support to the market.
A shift away from commodity markets by fund traders with the uncertain economic outlook helped to pressure the market. Jordan bought 100,000 tons of Wheat from Ukraine.
For the 1st crop report of the season, the winter Wheat crop was rated 47% good/excellent which is unchanged from last year but last year was the worst rated first crop reading of the year since at least Y 1986 which is as far back as our records go.
After the close, Egypt announced a tender for optional origin Wheat. The tender will include Ukraine and traders will monitor the results tomorrow to see if the increased competition for Russia will drive down prices.
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.