Grains firm on positive trade headlines
Chicago soybean and grain futures climbed on Wednesday, lifted by news of an upcoming meeting between the U.S. and Chinese officials in Switzerland that boosted hopes for easing trade tensions. U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet China’s top economic official, He Lifeng, this weekend for talks. -Reuters

Wheat

Tuesday’s Recap
July Wheat futures settled at 536’0 Tuesday, adding 4’6, in higher trade across the board. Across all maturities, a light 89,848 contracts changed hands, with 54,826 traded in the July maturity. Overall open interest increased 3,894 (0.86%) to 456,263. July shed 109, or 0.0407%, finishing at 267,590.

Technicals
Wheat futures were able to hold our pivot pocket on a closing basis yesterday and are back higher this morning. Despite the higher trade, wheat Bulls are likely still in a “prove it” mindset as many of the recent rallies have failed to find follow through. A close above 546 3/4-550 3/4 and we could see the upward momentum pick up steam with the next upside objectives coming in about 20 cents higher.

Technical Levels of Importance
Resistance: 548 1/4-550 3/4***, 569 1/4-571***
Pivot: 532 1/2
Support: 517 1/2-523 1/4***, 501 1/4***

Popular Options
The June 525 put saw the most changing hands with 925 contracts traded. Calls with the greatest open interest are the July 600 strike (14,575), and for the puts are the July 550 strike (9,172).

Volatility Update
Implied Volatility closed moderately down with WVL off by 1.2, to end the session at a one week low of 28.77. Historical volatility (30-day) closed the day at 21.32%, higher by 0.0492%, to a one week high. The WVL Skew was slightly down with the 30-day losing 0.085, finishing the session at a one week low of 6.07.

Seasonal Tendencies Update
(Updated on 5.5.25)

Below is a look at historical price averages for July wheat futures on a 5, 10, 15, 20, and 30 year time frames (Past performance is not necessarily indicative of future results).

Check out the Charts here: https://bluelinefutures.com/2025/05/07/grain-markets-firm-in-the-overnight-and-early-morning-trade-will-it-last-through-todays-session/

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