Wheat Futures—Wheat futures in the December contract is trading higher by 1 penny at 4.79 a bushel as I had been recommending a bearish position over the last month or so originally in the September contract at the 5.04 level while getting stopped out earlier this week at 4.81 as I am completely neutral the grain market heading into this highly-anticipated crop report which will be released this afternoon.
Wheat prices are now trading above their 20-day but still below their 100 day moving average as the trend is mixed as China and the United States might possibly make some type of trade agreement which is supporting the grain market today.
Large money managed funds are still heavily short wheat and the entire sector as they still believe lower prices are ahead as it will be very interesting to see what this crop report states as the volatility certainly will come back into play so sit on the sidelines and be patient as I’m not willing to stick my neck out before the report.
The next major level of resistance is around the 5.00 area as weak demand an oversupply issues have put pressure on prices over the last several months, however the trend line has been broken so look at other markets that are beginning to trend.
CHART STRUCTURE: SOLID
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