fbWheat Technical Analysis | Wheat Trading: 2017-01-27 | IFCM India

Wheat Technical Analysis - Wheat Trading: 2017-01-27

High global crop estimate is bearish for wheat prices

Global wheat harvest is expected to reach third record high in 2017-18 due to favorable weather conditions. Will the wheat price continue falling?

World wheat production will decline next season – just slightly, according to the International Grains Council (IGC). IGC estimates the 2017-18 global wheat harvest at 735m tonnes. It is just 17m tonnes below the all-time high, making it the third biggest on record. The harvest is forecast to change little as the rise in Indian wheat sowings offsets sharp declines in US plantings while favorable weather conditions are expected in northern hemisphere, which accounts for the majority of world production. Ending season stocks in 2017-18 also are forecast to decline only marginally. High crops and ending season stocks are bearish for crop prices.


On the daily timeframe WHEAT: D1 is falling after rising to four month high in mid-January.

We expect the bearish momentum will continue after the price closes below the last fractal low at 429.8. It can be used as an entry point for a pending order to sell. The stop loss can be placed above the last fractal high at 442.3. After placing the pending order the stop loss is to be moved following Parabolic signals. Thus, we are changing the profit/loss ratio to the breakeven point. If the price meets the stop loss level (442.3) without reaching the order (429.8), we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

Sell stopBelow 429.8
Stop lossAbove 442.3

Trading signals with a probability of 80% by Autochartist

  • Easy to use
  • Fully automatic
  • Wide range of analytics

The best trading conditions and high-level services for our clients

We are ready to assist you on any issue 24 hours a day.

This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.