Pro Farmer Senior Market Analyst Rich Posson says the outlook for wheat remains bearish for the next month, with downside potential of $4.80 to $4.40 for SRW July futures. "Open interest surged recently alongside a drop in prices, which suggests new shorts were created," he says. "Funds continue to sell futures. And the five-week stochastic albeit oversold is acting bearish."
In the wheat futures chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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