Wheat futures were very regular since 22nd of May. On 9th of June pattern was broken and Wheat contracts are ranging. They hit previous resistance line and bounce again. Probably it is connected with development of negotiations about possibility of opening the Black Sea to civil ship to transport Ukrainian grains. Another development is opening new railway lines through Poland and Romania. Last WASDE report indicated supply problems and lower storage, but it was not changing the overall situation. The real question is how price will behave in coming weeks. Fundamentally blockade of Black Sea cut off Ukraine from global markets of wheat and there is more demand than supply. However with very high prices poorer countries and costumers will look into cheaper food like rice or corn. There is probability of forming some kind of agreement that will let Ukrainian wheat to be transported to the Black Sea.
Broken pattern suggests possibility of increasing price. It is interesting moment for speculation on Wheat.
Most important levels are $1080 and $1025. Good trading!
Broken pattern suggests possibility of increasing price. It is interesting moment for speculation on Wheat.
Most important levels are $1080 and $1025. Good trading!