Wheat markets were mixed for the week, with Chicago pushing strongly higher on a 24-cent gain, but Minneapolis ended 3 cents lower and Kansas City finished 14 cents higher.
Seasonally, wheat tends to rally into late October, and it appears that we’re following that normal pattern.
The quality and production losses have supported Minneapolis wheat, but the other markets have been reluctant to follow.
The massive spring wheat harvest is grinding along, and it looks like rains may delay some regions across the north.
Wheat prices are expected to settle into a narrow trading range (unless corn pushes notably higher).
With tightening corn stocks and plentiful feed wheat supplies (primarily hard red winter wheat), wheat price action has been closely tied to corn this year.
The grain complex started the week higher, led by corn and soybeans with gaps. But those gaps quickly faded, and Monday ended with outside days lower for wheat and corn.
It is confusing how the USDA can lower corn plantings by 3 million acres earlier this month in the supply/demand report, and then give back 2 million in this report.
Technically, the charts suggest that winter wheats have found their highs, with the outside day lower on Tuesday confirmed by Wednesday’s weakness.
Soft red and hard red wheat are seeing major disease issues, which is lowering quality and yields.