Rain forecasts in Russia have led to profit taking in wheat, but the question remains how bullish (as opposed to short covering) was this rally? If the price can keep its head above the 200MA, TA-wise longs may be worth accumulating.
While professional analysis points out that wheat's fundamentals in terms of oversupply are still very bearish, and thus an opportunity to sell down the rally and possible double-top if the 200MA wins out, it's worth keeping in mind whether another set of fundamentals - increasing yearly odds of extreme climate events and anomalies - has been adequately priced in.
Not investment advice, der.
While professional analysis points out that wheat's fundamentals in terms of oversupply are still very bearish, and thus an opportunity to sell down the rally and possible double-top if the 200MA wins out, it's worth keeping in mind whether another set of fundamentals - increasing yearly odds of extreme climate events and anomalies - has been adequately priced in.
Not investment advice, der.