Wheat Commentary - Just My Opinion

Egypt announces an overnight tender for optional origin wheat Overnight Egypt buys 120.0 K T. Russian origin wheat

Flat price wheat follows through from Tuesdays suggestive sell signal led by the KC market. As far as Im concerned its all about the possibility of beneficial moisture moving into the central southern Plains. Forecasts that I have seen suggest areas of Texas and Oklahoma could see some decent moisture over the near term. It still looks like the primary HRW areas of Kansas could come up short. Time will tell as it does with all weather forecasts.

Not much happens with the interior cash wheat markets. The export market for SRW remains slow but the export bid for HRW continues to be firm. I have to think thats about non-existent movement. Chgo spreads try to perk up a bit Toledo, Im told, is cancelling more deliverable receipts. KC spreads stay flat and wide.

With KC leading the way lower suggests we are in a liquidation phase. Specs had building a long position here while Chgo still had been covering shorts. I would like to think both of these markets (Chgo & KC) should realize some decent support down another 7-12 cents. Then again its all about how the weather forecasts develop.

Daily Support & Resistance for 02/22

March Chgo Wheat: $4.40 - $4.57

March KC Wheat: $4.58 - $4.75

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