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Middle Tennessee | I think something may be cooking in the Chicago wheat market, good for 30-40 cents quick. Open interest was up 15k Monday, another 2k Wednesday. Everyone knows we have the specs near-record short with month and quarter end 4 trading days away, with revival of volume from levels not seen as in months and prices not seen in years. The Dec-March spread has brought in 8 cents the last few days, and maybe shorts will patiently await the stocks report next week and that's all we get.
But, seasonals and well-extended shorts are with the buyers. In addition, a pitchfork on the daily from the July spike high to the median from the mini-rally in the first week of August should have given support on Friday near $4.80. That support was a failure obviously, if you can even call it that. However, that very fork had given to a spurious breakout on August 28, where the wheat traded 14 cents above the resistance line. Jpartner said that when forks are violated on one side, often mirror violations occur on the other side, giving a target for this week's low near $4.68, which has held. Thursday-Monay could be a good shot!
Edited by LongKC 9/24/2014 01:11
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wheat price
