Wheat futures (WHEAT) are trading massively lower. Recent information about milder weather in the US and a strong US dollar, which is strengthening today against risk aversion, probably contributed to this. Forecasts point to cooler and wetter weather in the US Midwest in the new month. Such conditions can record higher yields. Additionally, despite fears, no major attacks on Ukraine’s grain infrastructure were reported over the weekend. According to analysts at Top Hird Ag, forecasts speak of an almost complete absence of heat and precipitation in the states of Iowa and Minnesota.
Wheat futures are down nearly 2%. Looking at the chart at the H4 interval, we see that prices have completely erased the bullish momentum caused by Russia’s withdrawal from the grain deal. A bearish double top formation is evident and the price has broken below the trend line, indicating a short-term panic and massive withdrawal from long positions.
Source: xStation5
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2023-08-02 15:39:00
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