Wheat prices gather support from global weather concerns, soybean rally
A general rise in wheat prices led by higher export values for Russian wheat, along with some dryness concerns for both the U.S. and Black Sea region planting seasons have helped to support very strong gains for December wheat.
Technically, the close above $5.55 in December Chicago Wheat is a bullish development and leaves a test of the September 1 highs and maybe $5.82 as the next resistance areas.
The close above $4.80 per bushel, in December KC wheat, is also a bullish technical development and leaves $5.01¼ as the next upside target.
Traders indicated that this week’s Egypt purchase from Russia was done at prices that were $8.00 to $10.00 per tonne higher than the previous tender on September 3.
Thursday’s export sales report showed that for the week ending September 10, net wheat sales came in at 335,700 tonnes for the 2020/21 (current) marketing year and 300 for 2021/22 for a total of 336,000. Traders had expected sales near 300,000 to 700,000 tonnes. Cumulative sales for 2020/21 have reached 49.5% of the USDA’s forecast for the marketing year vs. a five-year average of 47.8%.
One of the factors supporting the market Thursday was talk of active tenders recently, as demand is picking up. This makes the U.S. sales news disappointing to the bulls.
Short-term support for December Chicago Wheat comes in at $5.50, with $5.68 and $5.81 as the next upside targets. December Kansas City weat support comes in at $4.80, with $5.01 as the next upside target. December Minneapolis wheat support comes in at $5.36, with $5.49 and $5.59 as next resistance.
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