The price of Chicago Wheat futures is up 1.90% at $9.6 per bushel on mid-Friday trades.
Prices of wheat has fallen to 4-month low providing some relief to galloping inflation rates. Chicago wheat futures on Friday hit their lowest in nearly four months and headed to a second consecutive weekly slump, dragged down by growing concerns over a global economic downturn, while an improved outlook for U.S. crops also added pressure.
Important agri-commodities like soybean, sugar, wheat and palm oil have fallen between 11-40% from their recent highs. And most of these commodities are trading near the pre-war level prices-which were taken from mid-February, since Russia officially invaded Ukraine.
Wheat prices declined on the possibility of the Ukrainian grains corridor opening up. A delegation from Turkey is travelling to Moscow this week to try and further negotiations with Russia to allow the release of some Ukrainian grain from the country.
On the technical side, the RSI of Chicago wheat futures stood at 34.43 and is currently trading below all SMAs: MA (5), MA (20), and MA (50). So, SELL position can be taken with the following target and stop-loss:
TRADE SIGNAL: CBOT WHEAT FUTURES – SELL: 9.2, TARGET: 8.4, AND STOP-LOSS: 9.6
