Wheat Market Recap: 6 September 2011
Dec Wheat finished down 15.50 at 760, 10.75 off the high and up 10 off the low.
Mar Wheat closed down 14.75 at 795.25. This was 10.50 up from the low and 8 off the high.
Dec Wheat bounced off of the mid-session lows along with the Corn market, but closed moderately lower on the session.
Weakness in most other commodity markets, and the sensitivity of wheat to currency fluctuations helped to pressure the market.
The rise in the USD to the highest level since mid-July along with weakness in other grains, weakness in energy and equity markets plus weakness in other commodity markets helped pressure the market early.
Aggressive selling drove the market to the lowest level since August 19th.
Weekly export inspections came in at 21.156-M bushels which was near the low end of trade expectations.
Cumulative exports have reached 25.9% of the USDA forecast for the season as compared with the 5-yr average for this time of the year at 27.4%.
Ukraine has decided to maintain their export taxes through the end of the year,, and after the close, Egypt announced another optional origin tender and traders will monitor results in the morning.
Crop progress and crop conditions reports will be released this afternoon.
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.