Wheat has traded higher this week with Chicago July wheat up 12 cents while Kansas City July wheat up 10 ¼ cents, however, the surging U.S. dollar and weaker energy markets are applying downward pressure this morning. Both markets came off yesterday’s high with profit taking after finding weekly support from weather concerns in the Black Sea, Canada and parts of Australia as well as news that China will increase imports of U.S. agricultural commodities. The weather concerns in the U.S. remain with extreme drought observed in Texas, Oklahoma and Kansas and heightened drought concerns in Colorado with the weather outlook hot and dry with limited rainfall expected. Momentum appears to be positive but coming in near overbought levels. Chicago near-term support is seen at 522 ¼ and resistance at 538 ¼ with Kansas City support at 541 and resistance at 557.
Wheat Jul ’18 Daily Chart