Wheat Market Rallies Amid Ongoing Ukraine-Russia Conflict
The wheat market has been experiencing an uptrend since June 30, with several explosive moves higher. While there was some profit-taking in wheat today, the December contract bounced off its low at 678 this morning.
The ongoing war between Ukraine and Russia is expected to continue for some time, potentially exerting pressure on exports from the Black Sea. However, unless there's significant end-of-month liquidation ahead, the rally in wheat may have staying power.
RSI (Relative Strength Index) is currently neutral, while stochastic readings are buy signals. The 14-day high and low for December '26 Wheat are $728 ¼ and $614 ½, respectively.
Pure Hedge recommends considering futures spreads, such as long December '26, July '27 or long December '26, March '27 with short July or March soybean oil contracts. For options, a buy of the December '26 wheat 720 call at 43.375 and sell of the December '26 wheat 760 call at 33.125 is suggested, costing $512.50 per trade package plus fees and commissions.