Price action: March SRW wheat rose 27 1/2 cents to $7.69, near the session high and the highest close in a week. March HRW wheat gained 27 3/4 cents to $7.72 3/4. March spring wheat futures rose 28 3/4 cents to $9.07.
Fundamental analysis: Wheat futures climbed sharply on short covering and bargain-buying following three straight down days. European wheat futures also rose amid signs of stepped-up global demand. Concern Russia may be close to invading Ukraine contributed to strength in wheat, with Reuters reporting the White House believes an invasion may occur soon. In 2014, when Russia annexed Crimea, wheat futures rallied around $1.50.
Earlier today, USDA reported 369,188 MMT of U.S. wheat inspected for export during the week ended Jan. 13, up from 234,356 MT the previous week and at the high end of expectations. China sold all 501,283 MT of state-owned wheat reserves put up for auction last week, at higher prices than the previous auction. Turkey purchased at least 175,000 MT of milling wheat from unspecified origins. Japan sought 72,351 MT of U.S. and Canadian milling wheat in its weekly tender. This week’s
Technical analysis: Winter wheat bulls and bears are on a level near-term technical playing field, thought prices are still in a seven-week-old downtrend and bulls need to muster followthrough buying the next few trading sessions. SRW bulls’ next upside objective is closing March futures above solid resistance at $8.00. Bears’ next downside objective is closing prices below solid support at the October low of $7.25 3/4. First resistance is seen at $7.75 and then at $7.85. First support is seen at $7.60 and then at $7.50.
HRW bulls’ next upside objective is closing March futures above solid resistance at $8.00. Bears’ next downside objective is closing prices below solid support at $7.25. First resistance is seen at $7.75 and then at $7.85. First support is seen at $7.60 and then at $7.50.
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