Chicago wheat futures price is down $12.6 per bushel on mid-Friday trades.
Wheat prices soar this week to a high of $12.6 per bushel on a combination of drought, war and an export ban in India.
India, which has experienced a heatwave that has damaged crops, on Friday announced an immediate ban on wheat exports, blaming a spike in global prices for threatening its security of the vital commodity to itself and other neighboring and vulnerable nations. The price of Chicago wheat futures has climbed 60% so far this year, in the wake of Russia’s invasion of Ukraine on late February.
Russia and Ukraine together account for 255 of global wheat exports. The Russian invasion of Ukraine has triggered a world-wide shortage of wheat and surging prices for bread and other staples.
Chicago wheat fall for a third day in row on Friday, moving further away from the two-month high it hit earlier this week, as reports that India could loosen an export ban and negotiations to resume sea exports from war-torn Ukraine calmed global jitters.
On the technical side, the RSI of Chicago wheat futures stood at 58.52 and is currently trading below MA (5) but above MA (20) and MA (50). So, SELL position can be taken with the following target and stop-loss: