Wheat Futures---Wheat futures in the September contract settled last Friday in Chicago at 4.99 a bushel while currently trading at 4.69 down about $0.30 for the trading week hitting a 3 month low. Prices reacted negatively off of Monday's crop report as fundamentally speaking this market remains on the defensive with ample supplies and excellent weather conditions as I have been recommending a bearish position from the 5.04 level and if you took the trade continue to place the stop loss on a hard basis only at 5.07 as an exit strategy.
Come next week's trade we will have to roll over into the December contract due to expiration which is just around the bend as I still think prices will retest the May 13th contract low of 4.27 as the whole grain market remains bearish in my opinion.
Wheat prices are trading under their 20 and 100 day moving average as the trend is to the downside as the large money managed funds are short as well as they still believe lower prices are ahead with the next major level of support around the 4.60 area which I think will be tested in next week's trade so stay short & continue to place the proper stop loss as I still think lower prices are ahead.
CHART STRUCTURE: SOLID
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