RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Chicago December wheat is down 2.5 as of Tuesday morning, but opened higher than yesterday at 437’6. Kansas City December wheat is down 2.25 cents, while Minneapolis December wheat is down 1 cent, and MATIF December futures unchanged. Outside market forced are mixed. Total September wheat imports were seen at 443,680 tonnes up 1.7% from last September. China sold 70,418 tonnes out of 2.0 million tonnes offered at auction today. The auction will continue through Thursday. The Chicago wheat market saw short covering from speculative funds as the managed money trader category increased their net short positions by 9,963 contracts to 77,692 contracts as of October 17. With open interest in Chicago up nearly 30,000 contracts since October 17, the managed money trader’s net short could be closer to 100,000 contracts.

From a purely technical outlook, a bullish signal was given with an upside crossover of the daily stochastics. Daily stochastics are showing positive momentum from oversold levels, which should reinforce a move higher if near term resistance is taken out. Market positioning is positive with the close over the first swing of resistance with a near-term upside target at 448.25 and next area of resistance around 444. 


Dec ’17 Wheat Daily Chart

Dec '17 Wheat Daily Chart

Manon Lasserre