I Remain Bearish Wheat Prices

I Remain Bearish Wheat Prices
I Remain Bearish Wheat Prices

Wheat Futures—Wheat futures in the September contract is starting the week off on a sour note down 3 cents at 4.67 a bushel as the entire grain sector is lower across the board today as ideal weather conditions over the weekend is putting pressure on prices here in the short-term.

I have been recommending a bearish position from the 5.04 level and if you took that trade continue to place the stop loss at 5.07 as an exit strategy as the chart structure will not improve for another 5 trading sessions so you will have to accept the monetary risk at this time.

Wheat prices are right near a 3 month low as we continually grind lower on a weekly basis coupled with the fact that the downtrend line also remains intact as I still believe prices will test the contract low of 4.27 in the coming weeks ahead.

Later this week if we are still involved we will have to roll over into the December contract due to expiration as the commodity markets remain weak across the board as I see no reason to be a buyer of anything except the precious metals and the bond market. The volatility remains low, but that can change quickly on any given day as we were down about $0.30 last Monday off of the report, however the trend is your friend and the trend clearly is lower.

TREND: LOWER

CHART STRUCTURE: SOLID

VOLATILITY: LOW

 

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