The price of Chicago Wheat Futures is up 2.58% at $10.320 per bushel.
The ongoing conflict in Ukraine has disrupted the global wheat supply. Russia and Ukraine combined account for around 30% of the global wheat supply, with their supply going mainly to Africa and the Middle East. Egypt imports around 80% of its wheat needs from Ukraine and Russia and consequently is suffering from the problem of food security as wheat prices soar.
Wheat prices were down recently as Russia signaled to ease attacks on some parts of Ukraine and on the prospect of increasing supply from India. After witnessing five straight record harvests, India has a substantial
exportable wheat surplus. This alternative supply source will be crucial for North Africa and the Middle East, which have experienced violent uprisings due to rising food prices. India’s commerce ministry is in the final talks with Egypt, and discussions are being held with China, Turkey, Sudan, Bosnia, Nigeria, and Iran.
The future prospect of wheat prices will depend upon the ongoing peace talks between Russia and Ukraine. Also, environmental factors like rainfall, climate, etc., in major wheat-producing countries will play a significant role.
On the technical side, the RSI of Chicago wheat futures stood at 48.66 and is currently trading above MA (50) but below MA (5) and MA (20). So, SELL position can be taken with the following target and stoploss: