US Wheat Review: Makes Strong Gains To Fresh Highs
CHICAGO (Dow Jones)--U.S. wheat futures closed sharply higher and set fresh contract highs or contract high closes Wednesday. Chicago December wheat set a fresh all-time high of $7.60 a bushel.
Chicago Board of Trade December wheat futures closed up 20 1/4 cents at $7.58 1/2 a bushel.
Kansas City Board of Trade December futures closed up 14 1/4 cent at $7.12 1/2.
Minneapolis Grain Exchange December wheat closed up 8 1/4 cents at $6.87 1/4.
The bull-market runs roll on in the wheat futures markets. Ongoing bullish fundamentals in the wheat futures market include a very tight world supply and demand balance sheet, rallies in European wheat markets this week, more talk of Australian drought conditions and wheat crop woes there, and recent strong end-user buying interest, said a brokerage analyst.
"At this point, nobody wants to step in and sell this market," said another analyst.
"Demand for SRW has been good and concerns (regarding wheat crop conditions) overseas should limit downside potential until an accurate assessment of global production and quality can be completed," said another brokerage house analyst. He added that the export sales pace so far for U.S. wheat has been very good recently, but said the sales pace could decline dramatically later in the crop year, as end-users front-load their purchsing programs.
There are no early technical warning signals of a market top being close at hand, said a market technician. Chart support for December wheat futures is located at $7.54 and then at $7.45. Resistance is seen at Thursday's contract and all-time high of $7.60 and then at $7.75.
Kansas City Board of Trade
December futures set a fresh contract high of $7.14 a bushel Wednesday. Technically, hard red winter wheat futures are also in a strong uptrend on the daily bar chart, with no signs of a market top close at hand, said the technician. The all-time high for K.C. nearby wheat futures is $7.44 a bushel. Resistance for December futures is seen at Wednesday's contract high of $7.14 and then at $7.25. Support is seen at $7.00 and then at Wednesday's low of $6.96 1/2.
Minneapolis Grain Exchange
December futures set a fresh contract high close on Wednesday and did match the contract high of $6.88 a bushel. The all-time high in nearby MGE futures is $7.32 a bushel. Technically, December HRS finds chart support at Wednesday's low of $6.79 and then at this week's low of $6.74. Resistance is located at Wednesday's high of $6.88 and then at $7.00, said the market technician.
