Wheat Futures—Wheat futures in the March contract settled last Friday in Chicago at 5.42 a bushel while currently trading at 5.66 as I have been recommending a short position from around the 5.44 level and if you took that trade continue to place the stop loss above the 10-day high standing at 5.66 as an exit strategy on a closing basis.
If we are stopped out will look at other markets are beginning to trend as the precious metal sector by far is the strongest uptrend at the current time as the grains remain choppy. Wheat prices are now trading above their 20 & 100 day moving average as the trend has changed after hitting a 7-week low last week as concerns about the French crop have supported prices in this week’s trade.
Volatility is starting to increase as my only other recommendation out of this sector is a short oat position which basically has gone sideways. Fundamentally speaking the USDA pegged 2020 U.S wheat acreage at 45 million acres as the volatility will increase substantially as we enter the spring and summer months which is right around the corner.
CHART STRUCTURE: SOLID
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