Chicago Wheat futures price is down 1.53%, closing at $11 per bushel.
The Food and Agricultural Organization (FAO), a United Nations agency, recently announced its Food and Price Index, which tracks monthly change in the international prices of a “basket of commonly-traded commodities,” witnessed the highest increase in March since the organization began tracking in 1990.
Russia and Ukraine account for about 30% of the global wheat supply. The conflict has disrupted the Black Sea trade and wheat plantation in Ukraine. While importing from Russia has been disincentivized by the western sanctions.
With wheat supply shortages and the increasing price of the commodity, the global hunger crisis is poised to reach a new peak. Those suffering the most will be those Western African and Middle-Eastern countries that rely heavily on grain imports from Russia and Ukraine. Like Yemen, Lebanon, Tunisia, Egypt, Turkey, Syria, Algeria, Morocco, and Ethiopia. The United Nations has warned that the World Food Programme (WFP) in West Africa will increase by $135 million this year due to high food and fuel prices. These additional costs will hamper attempts to relieve a spiraling food crisis in the region already fueled by conflict, drought, pandemic–linked border closures, and the impact of the Russia – Ukraine war.
On the technical side, the RSI of Chicago heat futures stood at 56.22 and is currently trading above all SMAs: MA (5), MA (20), and MA (50). So, a BUY position can be taken with the following target and stop-loss: