The price of Chicago wheat futures is down 0.72% at $10.6 per bushel on mid-Friday trades.
Chicago wheat futures price opened this week on a bullish note registering an increase of 5.10%. However, a majority of this gain was wiped out by the 1.94% decline on Tuesday. Wheat traded indecisively on Wednesday and declined further on Thursday.
Wheat prices has been underpinned by the lack of progress on talks to resume Ukrainian Black Sea exports. In addition to this, the European Union is facing a disappointing wheat harvest this year, crushing hopes of filling in the widening global grain supply gap. This becomes another source of fresh worry amid in already tight global market.
India, meanwhile, has barred its wheat from being exported amid the surge in global prices. Exports of Russia’s crop – expected to be bumper this year by some analysts – are complicated by the Western sanctions.
On the technical side, the RSI of Chicago wheat futures stood at 43.38 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: CHICAGO WHEAT FUTURES – SELL: 10.4, TARGET: 9.6, AND STOP-LOSS: 11.0