Oil price slides on demand concerns while corn and wheat prices also drop
Outlook on WTI, corn and wheat ahead of Wednesday’s US FOMC meeting.
WTI slips on demand concerns
Front month WTI futures swiftly reversed their early Monday morning gains to 78.87 following a deadly drone attack on a US military base in Jordan by Iran-backed militia as China demand concerns outweighed the fear of an escalation in the Middle East. The fall through the 200-day simple moving average (SMA) at 77.27 puts the one-month uptrend line at 76.48 and also the late December high at 76.20 on the map. If slipped through, the 12 and 22 January highs at 75.45 to 75.27 would be eyed next. Minor resistance above the 200-day SMA at 77.27 sits at Friday’s 78.22 high ahead of Monday’s 78.87 near two-month peak.
Corn price slips to mid-January low
Front month corn futures trade back in three-year lows and have so far fallen to 455, to their mid-January low which was made below the 460.1 July 2019 high, with the November 2020 high at 438 representing the next downside target. Minor resistance sits at the 451.8 low seen on Friday followed by the 22 January high and Thursday’s low at 454.0 to 454.1. More significant resistance lies at last week’s 459.5 peak.
Chicago Wheat prices resume their descent
Chicago wheat front month futures prices have resumed their descent and are seen sliding back towards their November-to-January uptrend line at 585.5 which lies above the mid-January low at 581. Minor resistance can be spotted along the 55-day simple moving average (SMA) at 607. While last week’s high at 623 isn’t overcome, the medium-term trend remains bearish.
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