Wheat Recap 8/15
Another down day in the wheat complex as fund liquidation and Egypt buying another go round of cheap Black Sea wheat weighed on the market.
Day 3 of the selloff from the release of the USDA crop report which did not offer any bullish news and only shows a wheat market adequately supplied at this time, after spiking up to $9.30 the day of the report KWU made a 4 week low today of $8.49 ½ the other markets showing similar action.
Technically KWU after breaking out of the flag formation the next level of support would be in the $8.23 range but without a break in corn I don’t see that happening, I would look for a bounce in the market as the wheat/corn spread has narrowed back up to levels that we saw in the last break with WU/CU in the 60’s and KWU/CU in the 70’s, this brought in buying into these spreads and should see the same action in the next few days, market still needs to keep wheat as a food grain until the full potential for the southern hemisphere crop is known.
