Wheat Futures Continue to Breakdown. Next Stop $5.00?
Wheat
Technicals (September)
September Chicago wheat futures broke below trendline support on Thursday which spilled into additional pressure on Friday and into the start of this week's trade. This price action keeps the Bulls in the driver's seat with little meaningful support until you get closer to the psychologically significant 5.00 level. On the resistance side, our pivot pocket from 525 1/4-530 will be the line in the sand to keep an eye on at the start of the week.
Friday's Commitment of Traders report was relatively flat from the previous week. As of July 23rd, Funds were holding a net short position to the tune of 75,184 futures/options contracts. Broken down that is 71,579 longs VS 146,763 shorts.
Bias: Neutral
Resistance: 537-539***, 553 1/2-556 1/4***
Pivot: 525 1/4-530
Support: 500**
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