Wheat higher: droughts in the US, and trade tensions
Wheat has been bullish since the beginning of 2018 and I think there is reason to expect to see it continue.
Some of the main drivers are:
1. Potential tariff introduction and major us trade partners like mexico moving to other wheat sources affect trade stability and commodities as a whole.
2. The developing drought in the US this summer
Watching for a move higher from the $5.00 level off the major support developed at $4.75. Probably not the most explosive move (unless the drought gets really bad, then watch for a boom!) and will expect a steady grind up into the $5.50-$5.85 through to the end of the year.
So what do you think? Is there a case for bullish wheat or will we stay sideways? Would love to hear your feedback, share with me your charts, ideas, and comments!
Peace, love, and sweet bamboo,
tbp
Note: All ideas expressed here are presented solely for learning and educational purposes only. Any gains or losses assumed by trading ideas presented by The Bad Panda are done so at your own risk.
Some of the main drivers are:
1. Potential tariff introduction and major us trade partners like mexico moving to other wheat sources affect trade stability and commodities as a whole.
2. The developing drought in the US this summer
Watching for a move higher from the $5.00 level off the major support developed at $4.75. Probably not the most explosive move (unless the drought gets really bad, then watch for a boom!) and will expect a steady grind up into the $5.50-$5.85 through to the end of the year.
So what do you think? Is there a case for bullish wheat or will we stay sideways? Would love to hear your feedback, share with me your charts, ideas, and comments!
Peace, love, and sweet bamboo,
tbp
Note: All ideas expressed here are presented solely for learning and educational purposes only. Any gains or losses assumed by trading ideas presented by The Bad Panda are done so at your own risk.
Comment:
First target reached. This is what I meant when I said I could be a choppy grind higher. Could even see it come back to the $5 and $4.85 at this point. Still bullish.
Comment:
Finding support around target 1 level
