July KC Wheat Chart

Wheat prices posted a new contract high at 13.79 earlier this week but since have fallen sharply in profit taking.

Technical indicators have turned down and we mentioned earlier this week that wheat has chart support between 12.59-12.02 and we are in that area of support.

Even though there is no sign of bottoming yet from the short term, the market has now fallen to an area of support where we are no longer a seller of wheat.

July KC Wheat Chart

Wheat prices down for the second day in a row, we were able to fill the gap that was left Monday morning.

The short-term chart has turned downward and the technical as well.

There is no sign of bottoming action, we are not overly bearish wheat, but we could see some additional chart day selling.

July KC Wheat Chart

Wheat prices exploded to new contract highs this week, in fact KC July wheat has rallied nearly $3 per bushel in less than 3 weeks.

Yesterday the market tried to fill a gap that was left in the charts on Monday morning, we filled a good share but not completely.

That gap was down to about 12.92, about another 30 cents below where we closed today.

We also would have significant chart support at the breakout level at 12.59.

July KC Wheat Chart

Wheat prices exploded yesterday with limit gains seen at times during the day in Chicago and Kansas City.

Today we did try to fill the gap early when prices were sharply lower, but prices did turn around and closed higher again with KC wheat posting a new contract high at 13.79.

There is no sign of a topping action following todays strong lose but with prices exploding to new contract highs and technical indicators extremely over bought this is the place to exercise some caution.

July KC Wheat Chart

Wheat prices have exploded to the upside rallying over $2 in less than 2 weeks.

Prices have now surged into new contract highs taking out the high of 12.59 from March.

This explosion to the upside has also taken our technical indicators well into the overbought range. 

July KC Wheat Chart

Wheat prices exploded on tightening global stocks and the fact that USDA did not lower India’s production and that is likely going to drag world stocks even lower in future reports.

Not only did we explode to the upside we took out the highs posted in March at 12.59 and posted a new contract high at 12.70.

July KC Wheat Chart

Wheat prices made a new high for the move up to 12.07 on the July chart.

We took out the high posted from April and that puts 12.59 as the next target and unless we get bearish news, we wouldn’t be surprised to see the market working in that direction in the next few weeks.