WHEAT SELL SIGNAL & HEDGE ALERT
We like taking some risk off the table or defending these levels in the wheat market after clawing back half of the $1.50 sell off.
Reports are saying that the Kerch Strait is closed until early next week, which handles 1/3rd of all of Russia’s wheat exports.
So the rally is due to geopolitical headlines. The USDA report didn’t provide a big bullish surprise like some thought it could.
We like either grabbing some downside protection or making an incremental sale. Simply taking off a little bit of risk for those who need to do so or should be. If you’re someone who has to move stuff off the combine or is on some storage type of program we especially like doing so. If you’re someone who isn’t in that position, you can afford to be less aggressive.
If you have questions or want to talk about some possible strategies that could fit you, feel free to give us a call or a text.
Office: (806)484-1214
THE CHARTS
Sep KC 🌾
We clawed back 50% of the entire sell off which sits at $6.85
Between here and the 61.8% level at $7.00 are the most common levels for us to fail.
We also have to be aware of the possible head and shoulders as well still.
Sep Chicago Wheat 🌾
We are smack dab in the golden zone.
The most common spot for a bounce to fail.
We also have the potential head and shoulders pattern as well. Which looks even more textbook in Chicago than KC.
None of these mean we “have” to fail here. It’s just an area where it makes sense to de-risk if you are someone who needs to do so.
Want to Talk?
Our phones are open 24/7 for you guys if you ever need anything or want to discuss your operation.
Jeremey & Office: (806)484-1214
Sebastian: (605)280-1186
Email: sfrost@dailymarketminute.com
Hedge Account
Interested in a hedge account? Use the link below to set up an account or give us a call.