Hello Kansas Wheat.
Grain markets had a slightly firmer feel last week as foreign end-users extended coverage, especially on spring wheat, and probably some corn.
This week’s closing futures table dropped the blue numbers (11-week closing highs) lower (the 03/03 week rolled off the table) and are thus nominally at least easier to hit, and set off buy-stops on a good breech. However…the caveat (as always) is until the solid breech occurs, the blue numbers will provide stiff resistance.
But notice MGEX (spring wheat) closed on a blue number. The market continues to “protect protein premiums” … Canadian spring wheat planting continues to progress on an average 5-year pace, but the cool and damp weather pattern persists., and even though it’s way too early to actually affect protein content in the newly planted spring wheat, the market is more than a little concerned.
We’ll dig a little deeper into the spring wheat situation in a moment, but before we leave this table (we’ll refer to it repeatedly), we need to point out corn is only a few cents from the resistance (and buy-stops on a breech…), while soybeans continue to go the opposite way.
Huge South American bean crops and huge North American soybean acreage have allowed Chinese buyers to let the market come to them. They
Source: Kansas Association of Wheat Growers