There was good news and bad news around for wheat bulls to start the week.
The good news was an upbeat signal for price prospects detected in the close to the last session, when Kansas City hard red winter wheat futures closed above those of soft red winter wheat, as traded in Chicago, for the first time in two months.
Typically, hard red winter wheat, the main type produced in the US, runs at a comfortable premium thanks to its higher protein levels. But that dynamic has been undermined by particularly strong stocks of the class.
“Kansas City wheat has begun leading over Chicago, which is a healthy sign” for prices, said Water Street Solutions.
Benson Quinn Commodities said that bulls “can find optimism that the hard wheat markets” - ie Minneapolis spring wheat as well as Kansas City hard red winter wheat – “have settled higher two weeks in a row”.
And indeed wheat prices in early deals on Monday set course for further gains.
The bad news was that Kansas City was struggling to maintain its premium over Chicago wheat.
As of 10:00 UK time (04:00 Chicago time), the Kansas City December contract was up 0.6% at $4.29 ½ a bushel – exactly in line with the Chicago December lot, which outperformed in gaining 0.9%.
Agritel put it that “markets are struggling to confirm any attempt of rebound in such context of ample supplies at a global scale”, a factor it said should be underlined by the US Department of Agriculture’s next Wasde crop supply and demand briefing, on Thursday....MUCH MORE