Trend in wheat prices
Wheat futures contracts for March delivery were trading near the crucial support of $4.70 per bushel on December 22, 2015. The fall in wheat prices sharpened the downward movement on December 22, 2015. The consecutive days of sharper downward movement might induce recoveries in a few days. However, it might not impact the direction of the change. Prices would continue to play below the key moving averages.
Wheat prices could be $4.65–$4.80 per bushel in the short run.
Fierce competition in the wheat exports market from Argentina, the EU (European Union), and Russia dragged wheat futures prices on December 22, 2015. The above average temperatures and forecast in the US Great Plains and Canadian Prairies would support wheat plant progress in the near term and drag prices down.
The depreciation of the US dollar by 0.25% on December 22 supported wheat exports.
The food businesses rose due to the fall in wheat prices. Their cost of materials fell. For the third, second, and second days, food companies Pilgrim’s Pride (PPC), Hormel Foods (HRL), and General Mills (GIS) rose by 1.8%, 1.1%, and 1.7% on December 22, 2015. They rose by 5.4%, 2.2%, and 2.6% during this period. After rising for a day, J.M. Smucker (SJM) fell by 0.02% on December 22, 2015. After falling for three consecutive days, the VanEck Vectors Agribusiness ETF (MOO) rose by 1.50% on December 22, 2015.