By IFCMarkets
Increased global wheat supply expectations bearish for wheat price
The US Department of Agriculture World Agricultural Supply and Demand Estimates June report a week ago forecast larger US 2020/21 supplies and slight increase in beginning stocks. Total 2020/21 wheat production is now forecast at 1,877 million bushels, and total supplies were raised 16 million to 3,000 million. Domestic use and exports for the new marketing year were left unchanged for this month while ending stocks were raised 16 million bushels to 925 million. And on Tuesday Ukrainian government raised its grain crop forecast for this year to 68 million tons from 65-68 million and Russia announced its grain exports will not be subjected to any quotas from July to December. And forecasts of beneficial rain in Europe allayed concerns about possible further yield losses after a very dry spring. Expectations of ample global wheat supply are bearish for wheat price.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Sell | |
| MA(200) | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Summary of technical analysis
| Order | Sell |
| Buy stop | Below 483.7 |
| Stop loss | Above 518.5 |
Market Analysis provided by IFCMarkets
