December wheat futures prices were above the key resistance level of $4.75 per bushel on December 9, 2015. Wheat prices rose the sharpest in the last four days. Wheat prices continued to trade below the 20-day, 50-day, and 100-day moving averages of $4.79, $4.96, and $4.96 per bushel on December 9, 2015.
The above chart shows that wheat prices could be $4.60–$4.85 per bushel in the near term.
Technical buying and depreciation in the US Dollar Index supported the wheat prices on December 9, 2015. Analysts think that wheat prices reaching the 2010 lows and the bearish fundamentals support the domestic demand sentiment and wheat prices.
Favorable weather conditions in Ukraine and the WASDE (World Agriculture Supply and Demand Estimates) report with higher-than-projected US wheat inventories supported the supply sentiment on December 9, 2015.
Higher wheat prices increased the costs for food businesses. It had a negative impact on the food businesses on December 9, 2015. Companies like J.M. Smucker (SJM) fell for the second trading day by 0.73% on December 9. General Mills (GIS) fell by 0.73%. This ended its three-day price rally. Hormel Foods (HRL) fell by 0.91%. It continued its volatile price movement for the fifth trading day. However, Pilgrim’s Pride (PPC) rose for the consecutive second trading day by 0.76% on December 9, 2015. ETFs like the VanEck Vectors Agribusiness ETF (MOO) rose by 3.0%. It recovered from a fall of 3.7% in the previous two days.