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Chicago Wheat Closes Near All-time Highs!

Chicago Wheat futures soared to new all-time highs for a non-deliverable period, as strong export prospects are keeping sellers at bay. Some initial support came from Europe, where LIFFE London Wheat made new all-time highs this morning, as continued wet weather in the U.K. has delayed the harvest with nearly 50% of the Wheat crop still in the ground. Speculative buyers were active, with commodity funds re-establishing long Wheat positions after last week’s commodity-wide sell-off due to liquidity concerns. Buy stops were also seen triggered above the previous contract high of $7.19 in the December Contract. The all-time high for Wheat futures was $7.50, but that took place in the last minutes before expiration of the March 1996 contract. $7.50 is seen as the next resistance level for December Wheat, with support now found at the recent highs of $7.19. December Wheat closed at $7.31 ¾, up 27 ¾ cents.

Gasoline futures were the lone bright spot for energy bulls this afternoon, as prices eked out modest gains on a higher-than-expected drawdown in Gasoline stocks last week. In the weekly energy stocks report, the Energy Information Administration reported that U.S. Gasoline stocks fell by 5.7 million barrels last week. This was well below pre-report estimates of a 600,000 barrel draw. However, a higher-than-expected build of both Crude Oil and Distillates – plus a shifting of concern about the level of Gasoline stocks to Heating Oil inventories as the peak driving season comes to a close – kept the Gasoline rally in check. 1.8000 is seen as the next support point for October RBOB, with resistance found at 1.8550. October RBOB Gasoline closed at 1.8234, up 0.0057.