Wheat Futures—Wheat futures in the December contract is trading higher for the 2nd consecutive session up $0.02 at 5.10 a bushel continuing it’s bullish momentum as prices are hovering right near a 3 month high.
At the current time the large money managed funds are short about 19,000 contracts as they still believe lower prices are ahead as I strongly disagree with that scenario as I have been recommending a bullish trade from the 4.82 level and if you took that trade continue to place the stop loss under the 10-day low which now has been raised to 4.85 as the chart structure has turned outstanding.
Wheat prices are trading above their 20 and 100 day moving average as the trend is higher and if you take a look at the daily chart the up trend line remains intact so continue to stay long as I see no reason to be short at this time.
Fundamentally speaking there are concerns about the heavy snow that has entered several key states that grow wheat as that could possibly hurt production numbers and that is why you have seen higher prices over the last several weeks. At the current time I also have a bullish recommendation in corn & soybean meal as I think the grain market is headed higher despite the fact that the Chinese trade agreement looks to be postponed once again.
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