May soft red winter wheat futures a selling opportunity on more price weakness. See on the daily bar chart that May SRW futures are in a solid price downtrend and recently hit an 8.5-month low. The bears have the solid near-term technical advantage and there are no early technical clues to suggest a market low is close at hand. Fundamentally, good moisture in the U.S. mid-section recently is a major bearish factor for the grains. A move below technical support at this week’s low of $6.96 3/4 would become a fresh selling opportunity. The downside price objective would be $6.00, or below. Technical resistance, for which to place a protective buy stop just above, is located at $7.45. Remember that the “mini” grain futures contracts are a liquid and viable way to trade the grain markets.
Futures