December SRW Wheat Futures Hit Four-Week Low Amid Trump-Xi Uncertainty

The recent Trump-Xi summit has left the grains market uncertain about fresh U.S. crop purchases from China, leading to price-bearish conditions for December soft red winter wheat futures.

The daily bar chart of December SRW wheat futures shows a clear downward trend, with prices hitting a four-week low. The moving average convergence divergence (MACD) indicator is also in bearish posture, with the blue MACD line below the red trigger line and both lines trending down.

Fundamentally, the lack of specifics on U.S. crop purchases from China has contributed to price weakness in the grains market. Additionally, discussions between Russia and Ukraine about scaling back their attacks on each other's infrastructure could lead to more grain being shipped out of the Black Sea region, further pressuring prices.

A move below chart support at $6.85 would give the bears more power and create a selling opportunity. The downside price objective is $5.85 or below, while technical resistance is located at $7.28.