• Wheat kisses new 2024 high

• Prices ↑ over 8% month-to-date

• Watch out for WASDE report on Friday

• Bulls back in control on D1 charts

• Key levels at 638, 629 and 615

FXTM’s new Wheat commodity is in the spotlight after hitting a fresh 2024 high on Tuesday!

Prices hit the 638 level this morning as fundamentals powered bulls.

Note: Wheat is priced per bushel. One bushel is equivalent to 60 pounds.

The soft commodity could see more action this week ahead of the highly anticipated WASDE report.

Note: WASDE is the abbreviation for The World Agricultural Supply and Demand Estimates.

This report is published by the United States Department of Agriculture (USDA).

But before we take a deep dive into the world of Wheat, here are the basics:

What is Wheat?

Wheat is a widely cultivated grain that is consumed across the world.

It is the main ingredient for many foods, ranging from bread, biscuits, cereals, and cakes among many other foods.

What does FXTM’s Wheat track

FXTM’s Wheat tracks the Chicago Soft Red Winter (SRW) futures.

This is the most actively traded wheat contract in the US and the global standard wheat benchmark in the world.

Some fun facts:

• One of the oldest crops in the world

• 6 classes of wheat grown across the US

• China is the largest wheat producer

• Russia is the biggest wheat exporter

• Gained over 8% month-to-date

The lowdown…

Wheat prices have been appreciating in recent weeks.

The soft commodity has gained over 13% since the start of April due to worries about dry weather in key exporting countries.

A lack of rain in Russia, the world’s largest wheat supplier has fuelled concerns over global production.

The bigger picture

The world’s Wheat stockpiles have contracted over the past four years.

Russia’s war in Ukraine along with other geopolitical developments and negative weather conditions in key exporting regions have hit global wheat stocks.

This has fuelled concerns over a tightening between the supply and demand of wheat.

Why this is an important week

All eyes will be on the USDA’s World Agriculture Supply and Demand Estimate report due on Friday.

This may offer investors fresh insight into the production and stocks of key grain for 2024.

Should the report show a decline in wheat production, this could push prices higher.

Technical outlook…

Bulls have made their presence known on the daily charts, with prices flirting around the 2024 high.

Still, prices may experience a technical throwback before the uptrend resumes.

Looking at the H1 charts, prices are under pressure with 629 acting as a resistance level.

• Sustained weakness below this point may open a path towards 615, 50 SMA, and 595.

• Should prices push back above 629, this could trigger a move back towards 638 and the next psychological level at 650.