Chris Kimble of Kimble Charting Solutions also pointed to a potentially bullish breakout of a wedge formation in WEAT’s chart. The wedge formation depicts a price pattern where the trend lines drawn above and below a price chart converge into an arrow shape. Once the security breaks out of the wedge, technical analysts believe it foreshadows a return to a major trend, or at least a short- to intermediate-term trend reversal.
Meanwhile, the global wheat market is also being pressured by crop concerns in Europe and Canada where dry and hot weather conditions are desiccating crops. The European grains traders’ association Coceral anticipates that EU soft wheat crop will come in at 140.6 million tons, compared to 148.3 million in 2014. Additionally, the El Niño weather pattern is also expected to cut Australian wheat crops in 2015/16 season to an eight-year low. [Wheat ETF Gets Some Weather Help]
Even with some encouraging catalysts, professional traders are betting on declines for agriculture commodities.
“Money managers have held a combined net-short position across 11 farm products for 15 straight weeks, U.S. government data show,” according to Bloomberg.
Teucrium Wheat Fund
