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Barchart
Barchart
Jim Wyckoff

Drought Conditions Are Setting In. How Much Higher Can Wheat Prices Go?

September soft red wheat futures (ZWU25) present a buying opportunity on more price strength.

See on the daily bar chart for September soft red winter wheat futures that prices are now trending higher and this week hit a nearly three-month high. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as the red MACD line has this week moved above the blue trigger line and both lines are trending up. The wheat bulls have the near-term technical advantage to suggest more price upside in the near term.

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