Wednesday, December 11, 2013
March Wheat finished up 2 at 640 3/4, 2 3/4 off the high and 5 1/2 up from the low. July Wheat closed up 4 1/4 at 646 1/2. This was 6 up from the low and 1 off the high.
While December wheat managed to drive lower to yet another new contract low today, March wheat managed to hold just above yesterday’s lows and grinded higher to close 2 cents higher on the day. December closed higher after the new contract low which adds some technical support to the market; especially with funds likely holding a record net short position. Traders indicated that bargain hunting was a factor. The market is oversold and there is also plenty of talk that US wheat is now competitive on the world market. News that the US was not involved in the Egypt snap tender overnight helped to keep sellers active early. Egypt bought 300,000 tonnes of wheat from Romania and France. March wheat traded as much as 4 3/4 cents higher on the day overnight do to talk of the oversold condition of the market after the contract lows posted yesterday. March KC wheat closed 1/2 cent higher with an inside trading day. March Minneapolis wheat closed 1/2 cent higher.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.