Wheat Futures Forecast: Buy the pullbacks

Fundamentally:

According to the Financial Times’ report:

Shoppers’ rush to stock up on non-perishable staples such as pasta and noodles to ride out the coronavirus crisis has boosted demand for wheat, which has risen sharply in futures markets on both sides of the Atlantic.

Prices have been supported by increased buying by flour millers while in France, shoppers have stockpiled baguettes to freeze, leading some bakeries to ration the nation’s favourite bread.

Wheat prices have also been lifted by efforts among various governments to add to strategic inventories. “The north Africans are buying a lot of grain. Stocks are moving from France to Algeria,” said Abdolreza Abbassian, senior economist at the UN’s Food and Agriculture Organization.

Heavy falls in emerging market currencies have also revived memories of 2010, when drought and a sharp drop in the rouble prompted Russia — the world’s leading wheat exporter — to ban shipments of grains for almost a year. Last week there were jitters in the market caused by speculation that Moscow and Kyiv were considering similar measures.


Levels as mentioned on the chart