Below is a sample of our Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
NEAR-TERM MARKET FUNDAMENTALS: Wheat saw a modest price recovery overnight following a sharp sell off on Friday. Traders credited the selling late last week to profit taking with funds also weighing in as sellers later in the session. A weaker dollar overnight was said to be the main supportive factor to start the current week. Wet weather is expected in the Delta and mid south to start the week with some welcome dryness in western and eastern soft red growing areas in the Midwest to start the week. The Plains are also expected to be mostly dry to start the week and this is considered beneficial. The Commitments of Traders Report for the week ending October 20th showed net buying by funds as expected. Trend-followers were net buyers of 10,011 to decrease their net short position to 37,592 contracts. They had been short by over a record of over 68,000 contracts during the first week of September. Index funds were net sellers of just 886 contracts.
TODAY’S GUIDANCE: Wheat ran out of steam on Friday on profit taking and a lack of fresh bullish news. Generally favorable crop weather in the Southern Hemisphere and the Great Plains of the US may outweigh the bullish influence of planting delays for soft red winter wheat for now. First support is near 542 1/2 in December wheat with the next support at 527 to 528. First resistance is at 569 to 570.
