December wheat in Kansas City has been under relentless pressure, hitting another new contract low on Monday. The weakness in wheat is due to Russia’s dominance in world export markets, Ukraine’s ability to export wheat even without the Black Sea Corridor agreement, and the fact that U.S. sales of hard red winter wheat are nearly 50% below those of the previous year.
Although the market cannot be described as oversold yet, a look at the weekly continuation chart shows a solid support band in the $6.80 to $7.00 range. KC December wheat is likely to find some support soon within the next 20 cents below Monday’s early low of $7.03.
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The comments above are for educational purposes only and are not intended as specific trading recommendations. Buying and selling commodities, futures or options involves significant risks and is not suitable for everyone.
Dana Mantini can be reached at [email protected]
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