Chicago wheat futures price is down 0.19% at $10.6 per bushel on mid-Friday trades.
Wheat futures price has witnessed consecutive declines for the past three days on the possibility of supply-chain relief. Talks of Russia possibly exporting more wheat put pressure on wheat prices.
The war in Ukraine has disrupted the global wheat supply as Russia and Ukraine account for nearly around 30% of the global wheat supply. The closure of Black Sea ports has further exacerbated the global grain supply chain while buying from Russia has been disincentivized by the western sanctions.
IKAR, a Russian agriculture consultancy group raised Russia’s wheat production forecast in 2022 by 0.5 million tonnes to 83.5 million tonnes. Wheat supply has filled up some of the supply voids, but the issue of high shipping and transportation costs will not provide relief to wheat prices at any time in the near future.
On the technical side, the RSI of Chicago wheat futures stood at 51.50 and is currently trading below MA (5) and above MA (20) and MA (50). So, the BUY position can be taken with the following target and stop-loss:
