Kansas Association of Wheat Growers
August 6 Dan Maltby Marketing Newsletter
Hello Kansas Wheat.
This WSJ article headline says “Global Heat Wave Toasts Wheat and Prices Soar” …
https://www.wsj.com/articles/global-heat-wave-toasts-wheat-and-prices-soar-1533391201
After reading the article, I admit I’m tempted to put out a big sell recommendation on any remaining unsold wheat, as my opinion is there is no way anyone is coming for USA wheat exports in a big way, BUT before I get too hasty, let’s go thru the usual stuff and see if we find some clues.
I was traveling late last week, so let’s start with the 11-week-closing-futures-table. We see KC lead the charge, up 34c. Chgo lagged, up 25c, and Minny trailed, up 20c. Corn settled up 8c, and beans were up 17c. KC set another new 4-week high, and we note the bigger buy-stops would be expected on a Friday close above $5.83 in KC U, or $6.06 in KC Z.
With big big big buy-stops looming less than 20c away, I’d be uncomfortable saying sell it all just yet. IF the rally continues, and those buy-stops get triggered, a guy would wish he had kept some dry powder.
SO, we better keep plowing thru the usual stuff, while acknowledging the table at least looks interesting, and IS NOT showing a good sell signal.
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Source: Kansas Association of Wheat Growers
