You are here: Home > articles > Forex > More Upside Expected for the Best Performing Agricultural Commodity
More Upside Expected for the Best Performing Agricultural Commodity
July 27, 2018 12:41 pmVideo
Latest News
- Euro suffers when ECB announces the first rate cut of the cycle – Special Report May 30, 2024
- Trading Signals for EUR/USD for May 30-31, 2024: buy above 1.0800 (200 EMA – rebound) May 30, 2024
- USD/JPY: Simple trading tips for novice traders for May 30th (US session) May 30, 2024
- Trading Signals for GOLD (XAU/USD) for May 30-31, 2024: buy above $2,345 (oversold – 200 EMA) May 30, 2024
- GBP/USD: Simple trading tips for novice traders for May 30th (US session) May 30, 2024
- EUR/USD: Simple trading tips for novice traders on May 30th (US session) May 30, 2024
- GBP/USD: trading plan for the US session on May 30th (analysis of morning deals). The pound recovered slightly May 30, 2024
- EUR/USD: trading plan for the US session on May 30th (analysis of morning deals). The euro recovered slightly May 30, 2024
- Forex forecast 05/30/2024: EUR/USD, GBP/USD, SP500 and Bitcoin from Sebastian Seliga May 30, 2024
- Technical Analysis – ETHUSD pulls back from 2-month high May 30, 2024
- Technical Analysis – USDCHF plunges near rising trend line May 30, 2024
- EUR/USD. May 30th. Bears have taken the offensive. The euro is rapidly falling May 30, 2024
- Forecast of GBP/USD pair on May 30, 2024 May 30, 2024
- Midweek Technical Look – GBPUSD, EURJPY, Oil May 30, 2024
- Video market update for May 30, 2024 May 30, 2024
- Technical Analysis – Gold flirts with lower Bollinger band May 30, 2024
- Has the pound rally run its course? – Special Report May 30, 2024
- USD/JPY: trading tips for beginners for European session on May 30 May 30, 2024
- Technical Analysis – USDJPY reapproaches multi-year highs May 30, 2024
- Market Comment – Dollar rallies as market angst spreads May 30, 2024
Trade issues have made the agricultural commodities to realize some of the biggest declines this year. After rising in the first few weeks of the year, agricultural commodities have turned south and are now seeing double digit losses this year. The reason for this is that the US is one of the biggest agricultural producers in the world. It’s fertile plains in the mid-west, fertile soils, and good climate makes it an ideal supermarket of the world.
While commodities like corn and soybeans have fallen significantly, wheat has been an outlier. Year to date, the price of wheat has gone up by more than 25%. As shown below, any declines in wheat this year have been ideal buying opportunities.
Wheat is one of the most important commodity in the world. Every day, people from all corners of the world eat wheat-made products like bread and cakes. The rise in price this year is because of the expected crop yield. Data from the United States Department of Agriculture (USDA) show that most countries expect low crop yield. Top producers like the European Union, Ukraine, Australia, and Russia expect reduced output by 4.4 million tonnes, 1 million, 2 million tonnes, and 1.5 million tonnes respectively. There has also been drought in other countries like India and Pakistan. As production falls, the world population is growing which translates to more demand.
Wheat futures are now trading at $541.88. This price is close to the $572 level which was the highest level since 2017. It is also above the 100-day simple moving average. The RSI is currently at 61 and pointed to a higher rise. There is therefore a likelihood that the price of wheat futures will continue to rise and potentially test the $572 resistance level. Traders should watch out for this level and exit the trade once the price becomes overbought.
The post More Upside Expected for the Best Performing Agricultural Commodity appeared first on Forex.Info.
Related Posts: