Wheat prices are sliding by nearly 2.5% today, reacting to the latest USDA data, which showed a significant increase in wheat stocks compared to last year. The greater availability of the commodity in the market has created supply pressure and prompted investors to reduce long positions, resulting in a dynamic price correction.
The increase in wheat stocks may be due to several factors, but currently, the most significant is reduced exports. The report indicated an increase in stocks both on farms and in off-farm storage, suggesting that supply throughout the chain is currently high.
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Source: xStation5
The price is falling to lows from the second half of August. It is moving within a narrow consolidation channel between 535 and 506. Further declines may indicate an attempt to test the lower boundary of the long-term downward trend.
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