Technical Analyst, Saxo Bank
Wheat is in a confirmed down trend closing below 1,034 support yesterday. RSI below 40 and testing key support at 972. A Daily close below is likely to fuel further sell off down to around 900-887. To reverse the bearish picture Wheat must close above 1,109.
Read our Commodities specialist, Ole Hansen's report about the background here: https://www.home.saxo/content/articles/commodities/finally-some-good-news-as-food-prices-ease-21062022
Soybeans has been range bound for the better part of 2022. A range that needs to be broken for direction.
Corn couldn’t stay above the falling trend line after bullish break out last week. RSI is still showing bearish sentiment indicating Corn to weakening further. 725 is key support that is likely to be tested.
If Corn prices again breaks above the upper falling trend line RSI must confirm the uptrend by closing above 60 threshold. If it doesn’t it could be another false bullish break. If that scenario plays out 825 is in the cards.
Coffee is technically in a short-term uptrend. RSI positive sentiment. Coffee is likely to test 242. If it closes above February highs at around 260 is likely to be reached.
For this bullish scenario to be demolished and reversed a close below 218 is needed.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.