. Daily Commodity Analysis - Wheat Futures Soar as Silver Holds Amidst Middle East Tensions

Daily Commodity Analysis – Wheat Futures Soar as Silver Holds Amidst Middle East Tensions

Daily Commodity Analysis – Wheat Futures Soar as Silver Holds Amidst Middle East Tensions

19 Oct 2023

Introduction:

Amidst global developments, wheat futures are on the rise. On the Chicago Board of Trade, December wheat delivery increased by 1.7% to $5.80 1/4 a bushel. Additionally, tightening supplies, driven by dry weather  wheat-growing nations like Australia and Argentina, are supporting CBOT wheat futures. The recent USDA announcement of China’s purchase of U.S. exports of soft red winter wheat is also influencing trader opinions. In the world of commodities, silver prices are stabilizing above $23, driven by growing safe-haven demand amidst escalating tensions in the Middle East.

Wheat:

Wheat futures rise on Overseas developments.

On the Chicago Board of Trade, wheat for December delivery increased 1.7% to $5.80 1/4 a bushel on Wednesday. While the violence between Israel and Gaza kept grains on edge, China’s stronger-than-expected gross domestic product estimate gave hope for U.S. export demand.

A tightening supply picture helped CBOT wheat futures as wheat-growing nations like Australia and Argentina battle the consequences of dry weather.

Furthermore, traders are continuing to reassess their opinions of wheat in light of the USDA’s announcement last week that China would be purchasing U.S. exports of soft red winter wheat.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 593.87| Positive Crossover | Bullish
  • MA 20: 609.86| Negative Crossover | Bearish
  • MA 50: 634.87| 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): 31.05 | Selling Zone | Bearish

Stochastic Oscillator: 13.55| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 621.95 | R2: 655.68
  • S1: 596.00| S2: 571.35

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 587.79 | Take Profit: 571.35 | Stop Loss: 600.76.

Silver:

XAG/USD stabilizes above $23 as Middle East conflicts strengthen safe-haven bet.

The price of silver appears stable over $23.00 as tensions between Israel and Palestine worsen.

Joe Biden reiterated that the US supports Israel “loud and clear.”

Every dip in the rising channel pattern that silver trades in is viewed as a potential buying opportunity.

The price of silver (XAG/USD) moves auction above the critical resistance level of $23.00, which has now turned into a bullish haven. The appeal for safe-haven assets has grown as the tensions between Israel and Palestine have intensified, which is why the white gold is strengthening.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 22.88 | Positive Crossover | Bullish
  • MA 20: 22.57 | Positive Crossover | Bullish
  • MA 50: 22.37 | Positive Crossover | Bullish

Simple:

  • MA 5: 22.97 | Negative Crossover | Bearish
  • MA 20: 22.56 | Positive Crossover | Bullish
  • MA 50: 22.00 | Positive Crossover | Bullish

RSI (Relative Strength Index): 60.99 | Buy Zone | Bullish

Stochastic Oscillator: 63.87| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 22.94 | R2: 23.91
  • S1: 22.34| S2: 21.61

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 23.18 | Take Profit: 23.91 | Stop Loss: 22.72.

Elsewhere In the Commodity Market.

Gold prices struggles for traction as investors assess Israel-Hamas tensions. Oil slips as Venezuela sanctions ease, Middle East in focus.

Gold up (0.17%) at 1950.66, Silver up (0.18%) at 22.89, Palladium down (2.39%) at 1102.00, Platinum down (0.85%) at 878.00, Brent Crude Oil down (1.85%) at 89.80, WTI Crude Oil down (85.74%) at 1.78 as of writing time.

Key Economic Events & Data Release Today:

(USD) Fed Chair Powell Speaks at 21:30.