The wheat market started the first week of August with gains but ended the week under pressure.
Early week support was due to fund buying as traders turned to be willing buyers once Congress announced a compromise on the debt ceiling issue. Light support spilling over from a limit up move in the corn as traders show production concerns. But late in the session wheat come under pressure from spillover pressure from a sell-off in the corn market and world economic troubles. For the week September Minneapolis closed 7.5 cents lower, September Chicago gained 9.25 cents, and September Kansas City gained 4 cents.
Wheat opened last week lack luster and much weaker than expected. But it did not take the wheat exchanges long to regroup and charge forward. Early support was due to news of a compromise in Washington on the debt ceiling debate. Additional support was due to continued adverse weather in the Northern Plains. Harvest is right around the corner in the Northern Plains and so far early harvested results are not encouraging.
The Aug. 2 session had wheat open mixed with Chicago the leader. Chicago was supported by a stronger corn market as Chicago wheat tries to hold its premium to corn. Trading volume was heavy in Chicago with more than 128,000 contracts changing hands. The Minneapolis market was the worst performer posting as much as 25 cent losses. Minneapolis was under pressure from favorable weather forecasts which are calling for less humidity and cooler temps to move in later this week.
A surprising note, spring wheat conditions decreased 4% and still could not manage to trade with gains