Wheat Futures— Wheat futures in the May contract settled last Friday in Chicago at 5.25 a bushel while currently trading at 5.13 down another 12 cents for the trading week as the Coronavirus continues to weaken demand putting pressure on prices as we are right near a 4 month low.
I have been recommending a bearish position originally in the March contract from the 5.44 level and if you took that trade the stop loss now stands at 5.40 and in Tuesdays trade will be lowered to 5.34 as the chart structure has finally started to improve therefore lowering the monetary risk.
Ideal weather conditions in the Great Plains part of the United States is a bearish fundamental factor towards prices as the mentality is to be risk off in the short term so stay short as a bottom has not been formed at this point. The next major level of support stands around the 5.00 level and if that is broken 4.80 could be in the cards as prices still look expensive in my opinion.
CHART STRUCTURE: SOLID
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