Wheat continues its downtrend, declining around 10% from its recent high
28 May 2022
The price of Chicago Wheat futures is down 0.33% at $11.4 per bushel on mid-Friday trades.
Wheat started the week with mild bullish pressure, gaining around 1.80% on Monday. Prices, however, fell on the two subsequent days, i.e., on Tuesday and Thursday. This decline is a resumption of the prior downtrend of the previous week. While the price briefly recovered on Thursday, the price fell again on Friday, making this a bearish week for wheat futures price.
Wheat prices this week have fallen from their recent high of more than 2 months, which was triggered by the Indian government’s ban on wheat exports. Since then, wheat prices have slid back as some Indian government officials stated there was room for maneuver.
While Russia continues to export wheat, it has slowed down recently. However, they are still a big player in the market despite sanctions and other restrictions. The future prospect of wheat supply will depend on the climate of the breadbasket regions and trade resumption in the Black Sea ports.
On the technical side, the RSI of Chicago wheat futures stood at 50.28 and is currently trading below MA (5) and MA (20) but above MA (50). So, SELL position can be taken with the following target and stop-loss:
TRADE SIGNAL: CHICAGO WHEAT FUTURES – SELL: 11.2, TARGET: 10.6, AND STOP-LOSS: 11.6