Russia-Ukraine Rumors Spark Wheat Price Drop

Falling wheat prices present a selling opportunity according to Jim Wyckoff of Barchart. On the daily chart for September soft red winter wheat futures, recent downside price action has produced a bearish 'key reversal' down and a rare broadening pattern at higher price levels.

Rumors have circulated in recent days that Russia and Ukraine are discussing stopping their attacks on shipping around the Black Sea, a major grain-shipping route. This, combined with falling crude oil prices, has been bearish for the grain futures markets.

The chart support level is $6.52, below which would be a selling opportunity. A move below this level could result in a price target of $5.70 or lower. Technical resistance is located at $6.85.