Wheat is the strongest gainer among agricultural commodities today. There are at least several reasons for the increases. Analysts are not convinced that, in view of the Ukrainian counteroffensive in July, the Black Sea grain agreement will be extended, and the breach of the Novaya Kahovka dam will negatively affect the harvest. Also, the weather in Europe is not conducive to abundant yields due to drought, which could put pressure on wheat prices. Also in the United States, although current estimates do not predict a very poor harvest, farmers point to uncertainty because many regions are affected by drought, and some states are experiencing heavy rains, which are also not favorable for crops. American USDA estimated wheat production at 1.666 billion bushels, slightly below expectations (but 6 million bushels above last month). All winter wheat production was estimated at 1.136 billion bushels also below expectations but also 6 milion bushels above last month as well. WHEAT is trading up nearly 4.2% today.
Drought map of the United States - central states where wheat and corn crops are particularly popular are affected by drought. Source: USDA, Droughtmonitor
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WHEAT chart, D1 interval. The price of wheat contracts broke the SMA100 at $682, but it is worth noting that the downtrend has lasted for a very long time and is still the base scenario from the AT side of the key resistance pierces at $750 where we see the SMA200 (red line). Source: xStation5
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