. Daily Commodity Analysis - Wheat Hits 3-Year Low; Silver Shivers Amid Dollar Dominance

Daily Commodity Analysis – Wheat Hits 3-Year Low; Silver Shivers Amid Dollar Dominance

Daily Commodity Analysis – Wheat Hits 3-Year Low; Silver Shivers Amid Dollar Dominance

28 Sep 2023

Introduction:

In the world of commodities, wheat futures took a significant hit due to recent developments in the Black Sea region. The news of Ukraine diversifying its crop exports to neighboring countries sent shockwaves through the market, causing wheat prices to plummet to a three-year low. Meanwhile, in the realm of precious metals, silver (XAG/USD) faces a challenging landscape as investors closely monitor U.S. economic data amid a strong dollar and rising Treasury yields. These dynamics underscore the volatility in today’s commodity market. Additionally, oil prices see upward momentum on U.S. crude drawdowns, while gold exhibits a slight increase amid a subdued U.S. dollar. In contrast, copper faces headwinds driven by concerns over rising interest rates and their potential impact on economic growth.

Wheat Futures:

Wheat futures drop on Black Sea developments.

In reaction to Ukraine developing new export strategies with other countries for its crops, wheat for December delivery dropped 1.6%, to $5.80 1/4 a bushel, on the Chicago Board of Trade on Wednesday, hitting a low that is over three years old.

Today, wheat dropped to its lowest level since December 2020, mostly as a result of the most recent news from the conflict in the Black Sea. Given that Ukraine formed an export strategy with adjacent nations, wheat prices are still at historic lows, according to Virginia Mcgatheys of Mcgatheys Commodities.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 593.84 | Positive Crossover | Bullish
  • MA 20: 609.86 | Negative Crossover | Bearish
  • MA 50: 634.86 | 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: 33.11| Sell Zone | Negative

Resistance And Support Levels: 

  • R1: 608.83 | R2: 641.46
  • S1: 584.71| S2: 551.37

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 574.07 | Take Profit: 551.37 | Stop Loss: 588.97.

XAG/USD traders eye US economic data, Fed moves.

The gloss of silver (XAG/USD), which signals the Federal Reserve’s likely hawkish movements in a volatile market, dwindles as investors watch U.S. economic figures. Amidst a turbulent financial environment characterized by a strong dollar and rising Treasury yields, silver must make its way.

Silver:

In the face of increased market uncertainty, the precious metal is still not far off its most recent two-week low.

Investors in XAG/USD are keeping a watch on U.S. economic indicators in the hope of learning more about the Federal Reserve’s rate policy.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 22.62 | Negative Crossover | Bearish
  • MA 20: 22.95 | Negative Crossover | Bearish
  • MA 50: 23.13 | Negative Crossover | Bearish

Simple:

  • MA 5: 22.59 | Negative Crossover | Bearish
  • MA 20: 23.10 | Negative Crossover | Bearish
  • MA 50: 23.03 | Negative Crossover | Bearish

RSI (Relative Strength Index): 35.12 | Sell Zone | Bearish

Stochastic Oscillator: 2.83| Sell Zone | Negative

Resistance And Support Levels: 

  • R1: 22.90 | R2: 23.74
  • S1: 22.40| S2: 21.36

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 21.97 | Take Profit: 21.36 | Stop Loss: 22.40.

Elsewhere In the Commodity Market.

Oil prices edge higher on US Crude draw, tight global supply. Gold prices show a minor increase amid mild USD weakness. On Thursday, copper prices among industrial metals continued to decline on worries that rising interest rates will slow down economic growth in the upcoming months. The price of copper futures dropped 0.4% to $3.6292 per pound, approaching its lowest level since mid-March.

Gold down (0.03%) at 1874.88, Silver up (0.12%) at 22.56, Palladium up (0.49%) at 1227.50, Platinum up (0.56%) at 892.00, Brent Crude Oil down (0.57%) at 93.81, WTI Crude Oil down (0.46%) at 93.26 as of writing time.

Key Economic Events & Data Release Today:

((USD) GDP (QoQ) (Q2) Forecast 2.1%, Previous 4.1% at 18:00