Get started

Wheatfutures

What you need to know to trade wheat futures in 2022Fears of the impact of Russia-Ukraine war on global inflation and recession have escalated in recent weeks and another major issue looming over the horizon are concerns that the conflict could result in a hunger crisis as both countries account for over a quarter of the world’s wheat exports. Wheat prices recently surged to a 14-year high, with the price of a bushel of wheat soaring more than 50% to $12.94 on Monday since the Russian invasion of Ukraine began. The price movement on Monday hit the Chicago Board of Trade’s limit for another day. Reliance on Russia and Ukraine wheat exports Russia and Ukraine are two of the world’s largest exporters of wheat, accounting for about 30% of the global total. In 2019, Russia was the world’s top wheat exporter, while Ukraine came in fifth next to the US, Canada and France, according to data from the Observatory of Economic Complexity. The disruption in both countries’ grain harvest and trade could have catastrophic impacts on their biggest buyers in the Middle East including Egypt, which depends on Ukraine’s wheat imports to produce subsidized bread to its poor population and other staples. These fears intensified on Wednesday after the Ukrainian government said it will ban exports of key agricultural goods like wheat, corn, salt, meat and oilseeds to maintain market stability in Ukraine and “meet the needs of the population in critical food products. Looming food shortage Many nations rely on Ukraine and Russia for grain and oilseeds and the crisis could exacerbate the supply of food especially at a time when low-income countries are still reeling from the COVID-19 pandemic. Some economists have warned that the war could lead to a repeat of the Arab Spring in the past decade when social unrest and armed rebellions led to soaring food prices. "The fallout from Ukraine will spread across the globe. Russia and Ukraine together export 30% of the world's wheat. As this war heats up, many countries will face: soaring food prices, catastrophic hunger & growing instability,” David Beasley, the head of the United Nations World Food Program said. Farmers in Russia and Ukraine are tipped to reduce their planting area in the coming seasons as the war intensifies, placing the pressure on other exporters to boost production. China, India, US work to fill in the gap Although Russia and Ukraine’s grain trade have not been technically included in sanctions imposed by Western countries, many importers have turned to other sources like China, India and the US to make up for any shortfalls, according to ING Bank, over fears of supply disruptions. “We would expect to see strong plantings from US farmers over the spring, leaving the potential for an increase in US spring wheat, corn and soybean area,” ING’s head of commodities strategy, Warren Patterson, said in a note on Monday. Volatility in wheat markets The lingering crisis in Ukraine has caused wheat prices to be highly volatile in recent weeks as countries work to ensure grain imports to feed their population. The CBOT soft red winter wheat, KC hard red winter wheat and MGEX spring wheat all reached their daily trading limits for another day on Tuesday, while US wheat futures snapped a six-day winning streak the same day. Investors have been hesitant in making big position moves for the second week in a row last week despite the market volatility, Reuters said. In the week ended March 1, commodity funds axed only 11,000 futures and options contracts from their CBOT wheat net short, down from estimates, the news outlet reported earlier this week, citing data from the US Commodity Futures Trading Commission. "Huge speculative interest has flowed into wheat that may have pushed futures past reasonable levels… The export market is difficult to define with many countries banning exports and tenders being canceled,” CHS Hedging was quoted by Bloomberg News as saying.
W
by BlackBull_Markets
Mar 7, 22 Wheat back up - BUY OppWheat came down for the first time in over 5 sessions so I was looking for a pullback and then I could hopefully get into a Buy Order. I did put in a Buy order at 1250 less than an hour ago. Markets are crazy wild with prices moving a lot. Like I have said all day today, I believe over the next 2 weeks Wheat and Corn will continue to go up. Definately there will be some volatility, but I think price will go up and I will make some money. I will keep as close an eye as I can on these trades (I have to sleep sometime), but I will keep my stops further away for these trades so I don't get caught. Trade well and stay safe. Heiko
CBOT:ZW1!Long
by HEIKOTradingSystem
Wheat: extreme levels and it will continueIt doesn't matter its overbought, the price continues rising. The war can create one-time only events in the markets. We've seen the Russian Moscow Exchange closed for more than 1 week, USD/RUB skyrocketing and commodities such as Wheat going up completely out of control. We bought Wheat more than a year ago and we've added more volume as the uptrend continued, but seeing these events, we increased even more volume 2 weeks ago and we will continue to do so as this Ukraine-Russia crisis keeps escalating. In European countries, depends a lot on Wheat from Ukraine, and that was completely halted since the beginning of this war. Also, according to some food producers, they have stock for 2 months tops. They don't have an alternative solution for this. Food prices are going up, and if this war continues, many food produces in the EU will not be able to produce wheat-based food in normal figures. The situation is very critical at this point. Disruption could last half a year at minimum. We hold it and add more volume daily as long as this crisis continues.
CBOT:ZW1!
by alvaromroo
GLOBAL RECESSIONWe are reaching extremely high Futures prices in the commodities sector. It's a bit worrying especially since these prices are approaching 2008 levels, some are higher. We might see a global recession, and it can be triggered by a black swan event (The Russian war could have already started this catalyst) and a global Inflation that doesn't seem to slow down. So what to do? try to time a crash? Play shorts/put options? Personally, I think it's better to hold cash and buy up stocks/etfs that become dirt cheap. You have higher chances of making serious gains buying the BIG DIP than trying to pull a BIG SHORT Here is Wheat Future's monthly chart. You can see that Wheat is reaching 2008 peak recession prices. Wheat also gained almost 60% in the last month alone. This means that the price of food HAS to go up = More Inflation. Oil is doing the same thing. y Copper hit all-time high
CBOT:ZW1!
by MoonBets
2
WHEAT LONG-TERM LONGS 📉📉📉📈 I just wanted to share with you the reason behind the big bullish move on WHEAT, Ukraine is the country that exports the most wheat in the Europe so the price will rise because of the supply damage. Also as we are in a RISK OFF market sentiment investors tend to buy this asset as they are thinking about PROTECTION both on money and themselves. I think we will see wheat way above 1200-1300$ if the military conflict it will continue. From a technical perspective we are in a clear bullish market structure as price keeps printing higher highs and higher lows What do you think ?
WLong
by AnonimFXRO
2
Food shortages entering back into playThe playbook for manoeuvring - actively adding longs We can start with a quick review of the general plan for the operation I shall be discussing. I imagine all sitting in longs from earlier in the year are ready to exploit greater freedom of movement which we we will posses a tick above August highs. So to seize the point, our attack is a momentum move, like a sailing boat when we get caught in the wind. Eyeballing a test of first targets at 900 as early as the yearly close. As can be seen from above, it would be quite wrong to describe these moves here as anything but painful for consumers. Depending on the price action at 900 we are flirting to unlock the GFC highs. We are 23% and counting, time to start swinging the bat!
CBOT:ZW1!Long
by ridethepig
5
WHEAT, closed in Stop ProfitAfter 3 months we close our positions on wheat. The price pulled back 25 points, leading our positions to hit the Stop Profit we had set at 769.80 to save profits, and it did. Very good are those who have deducted part of the contracts on 50%, others on 38.2% letting the remaining part of the contracts run, very well indeed. Now let's let the WHEAT go where it wants to go, we are far from any signal of the MCS, in February we will be in A1 of the annual and we will then evaluate any possible trade.
FX:WHEATF
by The_Cyclical_Trading
Is Wheat Ready to Rock?OANDA:WHEATUSD recently hit a high around the $7.16USD area and has been in a small downtrend since. It looks like it may be ready to head back upwards and test resistance again after a nice bounce off of support. Entering around the $7 mark would give us about a 2.37% retrace up to resistance and would be a perfect bounce off of the 0.5 fib. RSI on the 30 minute and 4 hour charts both look like they are in a position to support this move. Stoch RSI also appears to be in a spot to “roll over” on both time frames mentioned. * This Content is for informational purposes only. You should not construe any such information or other material as investment, financial, or other advice.
OANDA:WHEATUSDLong
by Magic-Charts
Wheat aiming at ATH this summer> Wheat (Triticum aestivum L.) is the most important crop in the world in terms of area harvested, and is one of the world’s staple foods. It provides about 20 % of the total dietary calories and proteins worldwide. > However, wheat has a defect, each degree-Celsius increase in global mean temperature, on average, reduces the global yields of wheat by 6.0%. Other important cereals are also affected; rice by 3.2%, maize by 7.4%, and soybean by 3.1%. medcraveonline.com medcraveonline.com __________________________________________________________________________________________ Now, without science, it is clear that Wheat futures are in middle of a brakeout. It seems speculators and market makers are already all over it for fundamental and technical reasons. I expect old high to be tested by end of the summer (late September).
OANDA:WHEATUSDLong
by Owcheew8