Record High For Chicago Wheat!
Chicago Wheat futures hit an all-time high this morning at $7.54 a bushel in the December 2007 contract, as strong exports and extremely tight world ending stocks have buyers scrambling to obtain supplies. Statistics Canada lowered that country’s Wheat production estimate to 20.322 million tons, well below the average pre-report estimates. Wheat futures in London and Paris also made new all-time highs today to add to the buying pressure, before profit-taking selling emerged once new highs were made. Prices fell sharply inter-day before a late short-covering buying surge near the close kept Wheat prices in the green at the close. Resistance for December Wheat is now seen at the new highs of $7.54, with support found at $7.15. December Wheat closed at $7.39, up 7 ¼ cents.
It was turnaround Thursday in the Cocoa ring today, as short covering buying propelled prices sharply higher after 6 ½-month lows were made on Wednesday. The only real fundamental news out this morning was the current arrival totals out of the Ivory Coast – the world’s leading Cocoa producer. Current arrivals totaled 1,186,000 metric tons, down nearly 10% from last year’s levels. However, traders report today’s rally was mostly technical in nature, with buy-stops being triggered above the recent highs of $1780 in the December Contract. $1815 is seen as the next resistant point for December Cocoa, with support found at Thursday’s lows of $1750. December Cocoa closed at $1792, up $38.
Mike Zarembski, Senior Commodity Analyst
