Wheat ends higher and posts a new high close in Chicago finally getting above $7.
Wheat rallied on the back of lower Russian wheat estimates but did end near the lows of the day. So, is wheat topping or can it keep moving higher?
DuWayne Bosse, Bolt Marketing, says, “The trend is higher, I’ve been fighting it. I keep thinking this whole wheat rally is something that needs to be sold and it eventually pulls back. I keep looking for a top in this market because we’re overdone,” he says.
Bosse thinks the market may have seen some farmer selling which trimmed gains but may have also priced in the current news and will need a bigger crop problem to continue to push much higher.
“If the Russian wheat crop fell to below 80 million metric tons, then you could see the market rally another at least 50 to 75-cents, that’s probably what it takes for these funds to go long the wheat market. I think you’ve done a really good job of getting them out of short positions but going long and being bullish U.S. wheat is a whole different thing,” he says.
Soybeans fall hitting chart resistance and with the lack of confirmation of last week’s old crop soybean export buys by China. “This $12.50 area has been kind of a tough point to get up and over,” he says.
Bosse adds the wet weather was driving some talk of acres being switched from corn to soybeans.
Corn did not follow wheat, but instead was drug down by soybeans.
