Blogging by the Bushel
With numerous challenges over the past several years for producers, we at Mercer Landmark understand the need for a comprehensive risk management solution. We seek to provide our customers with unparalleled service to ensure maximum results.

Never doubt the power of weather to move the market.

At the beginning of this week, “wheat was kind of a ho-hum thing because there wasn’t any good news or bad news” for the crop in last Tuesday’s USDA numbers.

Since then, wheat of course took off and went up–strongly—on news that there might be some wheat that got killed in the frost” and that more of the crop might be at risk. Saturday morning North of Minot, North Dakota it was 29 degrees. That doesn’t bode well. … Wheat has nine lives, but the market certainly got concerned.

With all that being said, the upward momentum in July wheat continues to build from the early May bullish divergence that had formed off the contract low. Short covering forced the market to a one month high of $5.19. Resistance above the market is at $5.25 and then the April high of $5.42. The former $5.01 resistance has now became support which incidentally is the 40 day moving average. Secondary support is at $4.71 and then the May low of $4.60.

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