. Daily Commodity Analysis - Wheat Futures Drop 2.1%, Silver Recovers 1%

Daily Commodity Analysis – Wheat Futures Drop 2.1%, Silver Recovers 1%

Daily Commodity Analysis – Wheat Futures Drop 2.1%, Silver Recovers 1%

26 Oct 2023

Introduction:

In the commodities market, Wheat futures took a downturn as supply conditions appear to be improving. Wheat prices for December delivery fell by 2.1% to $5.68 1/4 per bushel in response to reduced concerns about weather-related issues in key wheat-producing nations. Meanwhile, Silver (XAG/USD) rebounded from a one-week low, surpassing the $23.00 mark, drawing fresh buyer interest after a three-day decline. However, conflicting technical signals advise caution for bullish traders. Additionally, oil prices dipped due to rising U.S. stockpiles, while gold tested the $2,000 level amid Middle East tensions overshadowing rate hike concerns.

Wheat:

Wheat futures lower as supply dynamics looks to improve.

On Wednesday, wheat prices for December delivery dropped by 2.1% to reach $5.68 1/4 per bushel on the Chicago Board of Trade. This decline was attributed to the anticipation of weather-related concerns in certain wheat-producing nations subsiding.

Less severe weather problems in Argentina and Australia, along with improved shipping conditions in the Black Sea region, have exerted downward pressure on wheat futures during today’s session. The momentum that had been observed in previous grain sessions has diminished this week.

The weekly Export Inspections report showed 168,868 MT of wheat was exported during the week that ended 10/19. The season’s total wheat export was 6.923 MMT, down 2.59 MMT (27%) from last year’s pace. 

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 593.84| Positive Crossover | Bullish
  • MA 20: 609.86| Negative Crossover | Bearish
  • MA 50: 634.84| Negative Crossover | Bearish

Simple:

  • MA 5: 592.25| Positive Crossover | Bullish
  • MA 20: 611.78| Negative Crossover | Bearish
  • MA 50: 642.87| Negative Crossover | Bearish

RSI (Relative Strength Index): 31.5 | Sell Zone | Bearish

Stochastic Oscillator: 13.55| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 622.38 | R2: 657.85
  • S1: 592.98| S2: 571.35

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 588.65 | Take Profit: 571.35 | Stop Loss: 602.39.

Silver:

XAG/USD recovers further from one-week low, retakes $23.00 mark.

Silver saw renewed interest from buyers on Thursday, breaking a three-day slump that had pushed it to its lowest point in over a week.

However, the conflicting technical indicators advise caution for bullish traders before considering additional upward moves.

Silver (XAG/USD) extends its rebound from the mid-$22.00s, which marked a one-week low, and advances during the early European session on Thursday. Breaking a three-day decline, the silver price is now hovering around the $23.00 mark, reflecting a gain of nearly 1% for the day.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 22.96 | Negative Crossover | Bearish
  • MA 20: 22.94 | Positive Crossover | Bullish
  • MA 50: 22.71 | Positive Crossover | Bullish

Simple:

  • MA 5: 22.91 | Positive Crossover | Bullish
  • MA 20: 23.04 | Positive Crossover | Bullish
  • MA 50: 22.52 | Positive Crossover | Bullish

RSI (Relative Strength Index): 56.25 | Buy Zone | Bullish

Stochastic Oscillator: 43.23| Neutral Zone | Positive

Resistance And Support Levels:

  • R1: 23.16 | R2: 24.08
  • S1: 22.62| S2: 21.96

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 23.38 | Take Profit: 24.08 | Stop Loss: 22.92.

Elsewhere In the Commodity Market.

Oil falls after U.S. stockpiles climb, Middle East tensions in focus. Gold tests $2,000 as Middle East concerns offset rate hike jitters.

Gold up (0.52%) at 1990.39, Silver up (1.05%) at 23.07, Palladium down (0.31%) at 1122.00, Platinum up (0.22%) at 904.50, Brent Crude Oil down (0.62%) at 89.58, WTI Crude Oil down (0.71%) at 84.78 as of writing time.

Key Economic Events & Data Release Today:

(USD) Fed Chair Powell Speaks at 02:05.

(USD) GDP (QoQ) (Q3) Forecast 4.3%, Previous 2.1% at 18:00.

(EUR) ECB President Lagarde Speak’s at 19:45.