Oil price consolidates, wheat tests major support while soybeans prices trade in multi-year lows
Outlook on Brent crude oil, Chicago wheat and soybean futures ahead of Wednesday’s FOMC minutes.
Brent crude oil price consolidation continues
The Brent crude oil price continues to range trade below last week’s 83.24 high while remaining above the 200-day simple moving average (SMA) at 81.74. A rise above 83.24 would put the mid- to late November as well as the January high at 83.79 to 84.58 on the map. This resistance zone should prove difficult to overcome, though. While last week’s low at 80.41 underpins, upside momentum should retain the upper hand.
Chicago Wheat prices test major support
Chicago wheat front month futures have fallen out of bed to their key 557 to 552 September and November lows which should at least short-term offer support. If not, the September 2020 low at 534 would be eyed. Given the swift descent from last week’s trading range around the 600 mark, the 552 September trough is expected to eventually be slid through, provided wheat prices remain below their 9 February high at 608.
Soybeans trade in multi-year lows
Front month soybean futures prices fell to 1,164, to levels last traded in December 2020 before staging a minor recovery which now probes the December-to-February downtrend line, having gapped higher over the US President holiday. The 1,200 region is likely to act as resistance, having last week acted as support. While no rise above the 8 February high at 1,209 is seen on a daily chart closing basis, the medium-term downtrend remains firmly entrenched. A fall through 1,164 would probably lead to the late November 2020 low at 1,143 being reached.
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