Agricultural News
OSU's Kim Anderson Says Wheat Price Drop Possibly Indicating a Return to Bearish Market
Thu, 02 Sep 2021 16:18:25 CDT
This week on SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson said lower wheat prices could create a head and shoulders pattern in the market, which has folks watching the markets closely.
Earlier this week, wheat prices were down a dime at $6.70, corn was down a quarter at $5.15 and soybeans dropped 40 cents, at $12.15.
"If we break that head and shoulders, we could drop 50 cents, so the market is watching that pretty closely," Anderson said.
A head and shoulders pattern appears as a baseline with three peaks, where the middle is highest. Usually, a head and shoulders pattern indicates a bullish-to-bearish trend reversal.
Anderson said lower-than-predicted harvest numbers for wheat is helping wheat prices from dropping lower at this point.
ProFarmer and Allendale, both market advisory companies, came out with surveys that showed harvest numbers for corn and soybeans higher than the United States Department of Agriculture's predictions, which is causing corn and soybean prices to shrink.
Prices may be going down, but Anderson thinks they are simply balancing out.
Hit the LISTEN BAR below to listen to Dr. Anderson's entire conversation on SUNUP.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
SUNUP.okstate.edu
Photo credit: tradingeconomics.com
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