Corn Futures ZC1 - Spooling Like a TurboBecause virtually the whole world is suffering from massive drought this summer, many crops are in bad shape. This is true with the U.S. cotton crop and it's also true with the U.S. corn crop, which according to USDA reports, barely half of is in good or excellent condition as of last week.
This is significant because the U.S. is the largest global producer of both, and by a huge margin.
This gives good cause to believe that a pump is on the horizon, but when, and how easily will it arrive?
The good news is for latecomers is that it seems as if the Ukraine panic pump and dump from April+ bottomed out in July, based on recent price action. "The second mouse gets the cheese."
There's a big gap on corn and wheat remaining from the June doom candle, which should transpire as a range that gets eaten into as we head into later September and October.
Winter may very well be new all time highs, because the world and humanity is in a lot of trouble. The environment is not in good shape, but to understand what this really means, you have to throw away the leftist-socialist-establishment "carbon" narratives, because those things are not only distractions, but they exist as a Communist Party pretext to take away your Freedom of Movement.
But just look at the lack of water and functioning ecosystem and ask yourself how long the happy is going to remain in North America.
The situation in Europe is already very dangerous.
Regardless, with the way price action has traded this month, it seems likely that corn futures has a good shot of breaking July's high before the end of the month. But it also looks like it may not run in a straight line up and take care of that business on Monday or Tuesday.
If you get a retrace into the 597 range, it seems there's a functional trade. However, it's entirely possible that August fails to break July's high. But if you can get out over 640 all the same before the month closes, you'll have done pretty well.
As for the rest of that gap above, I don't think we see that until the next commodities supercycle starts, likely beginning to ramp in late September-October.
Today is like a turbocharger. They all take a bit to spool. But once they do, it's really fun.
Unless you're the one standing in front of the Ferrari.
Wheat
Commodity Wheat idea (06/09/2022)wheat
The completion of the (C) wave of the flat irregular wave, and we expect a drop in wheat in the coming period after ending the correction pattern as we explained, and we expect it to target 773 at 1.618%, or it may continue to 2.618% at 744 since trading is the lowest point of resistance 839.25
Why Rice Prices Determine the Direction of Interest Rates?Recently, I received questions asking my opinion on their borrowing cost, if they should go for fixed or float rates. We somehow know there is inflation, but not exactly sure how long it will last and how bad it will get. Because higher inflation leads to higher interest rates.
While I cannot advise them as I do not have a banking license to do so. However, I can point them to the commodity markets, I hope by doing so, it can help them to understand and read into the direction of interest rates with greater clarity.
Background on edible commodities:
Rice is a staple in the diets of more than half of the world’s population, especially in Latin America, Asia, and the Middle East. Annual production of milled rice tops 480 million metric tons, which makes it the third most-produced grain in the world after corn and wheat.
An increase in rice prices or edible commodities, it will really add pressure to the existing global inflationary pressure. Hardship will be more intense especially compare to other commodities like crude oil.
In short, people can still live with some inconvenience without cars, but not without food.
Therefore, when food prices become much more expensive, the central banks immediate and urgent measures is to counter it by rising interest rates.
Content:
. Why edible commodities determine the direction of interest rates?
. Technical studies
. How to hedge or buy them?
Rice Market:
91 Metric Tons
$0.005 = US$10
Example -
$0.01 = US$20
$18.00 = 1800 x US$20 = US$18,000
From $18 to $19 = US$10,000
If you are trading this market for the short-term, do remember to use live data than delay ones.
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
That Friday Bounce - SPY, OIL, BONDS, Wheat, SILVER, USD, BTC OK a nice bounce into the daily MA cluster. I do think we get choppy over the next few weeks, so expect a lot of up and down and take profits when you get them. SPX may pullback early next week only to rally into the end of the week. Oil similar choppy movies to 92 and maybe 95 later in September. Wheat tested it's channel and so far has pulled away nicely. Gold and SIlver look promising and the US Dollar may pullback hard helping the metals in general. BTC looks choppy and probably makes one more leg down into Labor day. Good luck and enjoy some time off.
WHEAT AnalysisSee Chart For Top-Down Analysis Ideas.
-Price inside motnhly area of demand
-Daily downtrend trend lines broken
-4hr downward channel broken
-Price above 4hr 200ma
-Opposing pivot point area of supply removed
-Some traders will look to take the first demand area as a continuation of trading with the trend while others will wait for new lower timeframe 5min buy setups.
--A
Commodity Wheat idea (30/08/2022)wheat
And we expect the end of the wave ((C)) at prices of 849.00 expect the decline from the current prices, but there may be an extension in the rise to price of 872, so we should be careful in the coming period, but for the time being, the decline is in place since trading is below the 849 resistance point
Wheat up four days consecutively & approaching local resistanceTechnically, wheat has seen 4 consecutive sessions of strength. This is in the face of a stronger dollar and recessionary fears, which in theory should sap sentiment and forward demand dynamics. Wheat is approaching key level of resistance at 810. This is a previous POC, that has proved difficult to breach. Though fundamentally wheat should stay bid, considering macro outlook and supply issues, MACD, vwap and RSI all point down to further pressure should this fib retrace become invalidated
Wheat Watching I've been watching Wheat and Soy for a couple of weeks here as I've never traded them. I feel like I have a decent enough understanding of how they move to attempt and entry today.
Got a bullish signal with price action context for a potential long trade, looking for retracement entry.
✅WHEAT NEXT MOVE|LONG🚀
✅WHEAT went down to retest a horizontal support
Which makes me locally bullish biased
And I think that a move up
From the level is to be expected
Towards the target above
LONG🚀
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Wheat is falling as Ukraine starts exporting itNice short can be seen on Wheat.
If you look at the daily timeframe we are in strong downtrend and keep squeezing to the level.
Ukraine started exporting its grain again and first ship already sailed out of the port. One ship won't change much for the world, but fundamentally it's very important news for the market.
That's why we can expect more fall in the future.
Locally we are nicely squeezing to the daily lows, and after squeezing on 5m timeframe it would be nice to open short
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MOS Weekly TA Neutral BullishMOSUSD Weekly neutral with a bullish bias. Recommended ratio: 55% MOS, 45% Cash . *Fertilizer and grain prices are going down as supply chains ease due to a deal between Russia, Belarus and Ukraine that allows sanctions on fertilizer exports from Belarus and Russia to be lifted in exchange for Russia allowing Ukraine to resume grain exports from the Black Sea through Turkey. However, this could be short-lived considering: a) it's a deal with Russia who literally bombed a port in Odessa the day after signing the deal and b) that the world's second largest producer of fertilizer behind Russia (China) is likely to continue suspending exports of phosphates for the rest of 2022 . Although Mosaic's earnings and revenue were both up on the quarter they missed consensus estimates, while competitor Nutrien beat both estimates and had record earnings in the previous quarter; however, Mosaic expects revenue to continue to be strong for the remainder of 2022.* Price is currently trending up at $52.50 after breaking above the descending trendline from 04/18/22, it also broke above the 50 MA and $49 resistance and will need to close above it this week in order to reestablish support. Volume has been shrinking for the previous seven sessions (indicative of a potential pending breakout/breakdown) and is currently on track to favor buyers for five consecutive sessions if it can close this week in the green. Parabolic SAR flips bullish at $74.55, this margin is bullish at the moment. RSI is currently trending sideways at 50 after bouncing off the uptrend line from September 2015 at 40 support; the next resistance is at 53. Stochastic remains bullish and is currently trending up at 39 as it is still technically testing 29 resistance. MACD remains bearish and is currently trending sideways at -0.50 as it continues to form a trough, in order for a bullish crossover it would have to break above 1.10; the next resistance is 1.75. ADX is currently trending down slightly at 23 as Price is attempting to reverse the downtrend, this is neutral at the moment. If Price is able to establish support at $50 then the next likely target is a test of $56 resistance . However, if Price breaks down back below $50 support , it will likely retest the uptrend line from March 2020 at ~$45 . Mental Stop Loss: (one close below) $50 .
WHEAT BUY 1HWheat is trading above 200EMA on both Price and Volume. We could see a rise in price to 896.
There is also a bullish divergence on 1 hour RSI.
War is not over...
ZW / WHEAT FUTURESAbout FUNDAMENTAL ANALYSIS .
---We are now in the corn-demand zone and there are many factors supporting the buying.
1-The Ukrainian war.
2- - dehydration.
3-The rise in the price of oil will lead to a rise in the price of transportation.
About TECHNICAL ANALYSIS
--- we look at (" Sell VOLUME ") and ("Sell pressure") is in decreasing , Volume drives all markets.
About Psycho-
--- The short sellers start to take their money from wheat market because of a psycho- demand zone.
Lest we forgetHas the wheat market been forgotten? With wheat prices almost back to early February levels, right before the start of the Russian-Ukraine conflict, markets seemed to have erased all fears of a tightening wheat supply due to the conflict.
The recent selloff in wheat partially stemmed from the market belief that the situation in Ukraine is improving and that exports will be resuming. But with today’s news of missile strikes at Ukraine’s Odesa port, which serves as one of the main port for grains export, we think that the narrative for wheat is about to turn around with further fear and supply tightening on the horizon.
Looking at the chart, wheat is now sitting on a long-term resistance-turn-support level around the 850 mark. RSI recovered from deep oversold territory and is now grinding back upwards. On a shorter timeframe, we also see a falling wedge, which is seen as a bullish signal.
The combination of markets over-correcting to pre-conflict levels and bullish signals from current technical indicators provides a buying opportunity as we head into another period of uncertainty for wheat.
Entry at 842, stops at 752. Target at 1000.
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The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.