Wheat Futures––Wheat futures in the September contract is currently trading higher by 6 cents at 5.03 a bushel as I am now recommending a short position while placing the stop loss above the 10 day high which stands at 5.32 as the risk is $0.28 or $1,400 per contract plus slippage & commission.
Wheat prices topped out on June 27th at 5.57 as that was the height of the flooding problem that we have experienced in 2019, but improved weather conditions have put pressure on prices over the last month or so. Prices are right near a 2 month low as we are trading below the 20 day but slightly above their 100 day moving average, but the trend in my opinion is to the downside.
For the bearish momentum to continue we have to break the July 23rd low of 4.83 in my opinion so play this to the downside as I do believe the risk/reward are in your favor to take a short position.
At the current time I also have a bearish position in the oat market as many times wheat & oats can mirror each other to the upside or downside and in this case I believe they will follow each other lower.
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