World wheat buying has been strong.
The savior for the wheat market may be protein levels.
The Chicago wheat market has staged a solid rally since the first of October, while Kansas City and Minneapolis only joined the run last week.
Wheat markets traded in a narrow range this week after testing key resistance levels on Monday.
Wheat markets spent much of the week grinding higher, pulled along by Minneapolis in a rare show of leadership.
Well, the market had nervously waited for the August supply/demand report, bracing for big numbers from USDA. And they got them. Prices reacted negatively across the grain complex – for about two hours. Then the reversals higher came for wheat and corn as trading wrapped up for the week.
With winter wheat harvest nearly finished across the Northern Hemisphere, the trade is hoping for some good quality that will offset the unusually high amount of low-quality wheat in the world.
After a strong start on Monday, wheat spent the rest of the week working its way lower — eventually testing recent contract lows.
Most wheat futures markets pushed into new contract lows last week, tugged lower by corn and sharp losses in the soybean complex.
A rally in corn would again offer a gift to the wheat market. According to our analyst, it would be wise to take it.