KC Wheat Is Coming Into Its Own
Thursday, January 03, 2019
by Jerry Welch
Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729
Here are a few of my comments this afternoon in my twice a day newsletter, Commodity Insite. They pertain to grains and in particular KC and Minn wheat. Hope you find my ramblings of interest.
“The complex is holding up well this afternoon. The upside leader is Minn wheat with futures 8 to 9 cents higher with KC up 51/2 cents. Corn is 1 higher. And a close here or better bodes well for tonight and into tomorrow.
However, the Dow is sharply lower and so is copper. In the past when those two markets were flashing bright red it proved to be bearish most all other markets including grains. Thus, grains are holding up well but the day is still young.
I favor only KC wheat on the long side of the ledger. I am skeptical about all other markets including corn and soybeans. Try to hang on to KC wheat! “
The time is 9:50 a.m. Chicago
KC March wheat is now $5.03 with a high of $5.041/2. March KC is 101/2 cents higher, up 5 cents from my 2nd broadcast of the day. Technically, a close over $4.99 turns most charts bullish which will bode well for tomorrow. My work suggests the infamous commodity funds will buy wheat into the close today.
Wheat is showing independent strength with the Dow down 400 points and the CRB Index posting a modest gain of 70 points. Thus, commodities are outperforming stocks which is and should be a modest tail wind for wheat. And it does indeed appear that KC wheat is coming into its own!