By IFCMarkets
Increased global wheat supply estimates bearish for wheat price
The US Department of Agriculture World Agricultural Supply and Demand Estimates May report forecast larger supplies, increased trade, greater consumption and higher ending stocks for 2020/21. Foreign supplies are projected to increase 2.4% over year to 984.2 million tons due to higher production in 2020/21. And 2020/21 world ending stocks are estimated to increase 5 percent to a record 310.1 million tons – with China accounting for 52 percent of the total. And yesterday Rabobank lowered its 12-month Chicago Board of Trade wheat price down 6 per cent from last month into the range $5.25 – $5.34 a bushel, citing positive production outlook. Higher supply estimates are bearish for wheat price.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Neutral | |
| MA(200) | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Buy |
| Order | Sell |
| Buy stop | Below 505.3 |
| Stop loss | Above 527.2 |
Market Analysis provided by IFCMarkets