Wheat Futures

Wheat futures in the May contract are lower for the 3rd consecutive session down another penny at 4.61 a bushel as I have been recommending a bullish position over the last month originally in the March contract & if you took that trade continue to place the stop loss on a closing basis only at 4.60 as we could be stopped out in today's trade.

Wheat prices have had a hard time cracking the 4.80 level as we tested that in yesterday's trade only to sell off sharply as rains have come into the southern part of the Great Plains of the United States putting pressure on prices as crop conditions have improved.

Wheat prices are now trading right at their 20 day but slightly above their 100 day moving average as the trend is mixed as I will use the 10 day low as an exit strategy as holding on forever is not the way to trade in my opinion as that would be time to move on & look at other markets that are beginning to trend.

For the bullish momentum to continue prices have to crack the 4.80 level which is still quite a distance away as we would need some fresh fundamental news to push prices back at that level so stay long & don't 2nd guess while placing the proper stop loss.

TREND: MIXED---HIGHER

CHART STRUCTURE: EXCELLENT

VOLATILITY---INCREASING