Wheat hits two-month lows after good US crop data and improved agricultural conditions in Russia

• Wheat has fallen 19% after hitting 10-month highs on May 28 at $7.07.
• Worries about wheat harvests diminish around the world.

Wheat started the European session by registering a high of $5.85 during the European session. However, selling pressure led the commodity to reach a daily low of $5.71 at the close of the American session, losing 1.58% on the day.

World concerns about wheat harvests ease

The harsh dry and icy conditions that lowered crop estimates in Russia in May have been overcome. The return of rains in Russia and Ukraine has improved production expectations, causing raw material prices to drop by 19% to $5.71, after reaching a 10-month high of $7.07.

The United States Department of Agriculture has estimated in its most recent report that the winter wheat harvest is 27% complete. Likewise, the report highlights that 49% of this harvest is in excellent condition.

Technical levels in wheat

Wheat is at key support located at $5.70, which coincides with the 23.6% Fibonacci retracement. The next support is at $5.14, March 11 low. We observe the closest resistance at $7.07, the high of May 27, in convergence with the 78.6% Fibonacci retracement.

Wheat Weekly Chart