Weather deterioration in the US may reduce cereal yields
There is severe flooding in the Midwestern United States, which can damage cereal crops. Will oat prices rise?
Because of the severe flooding on the Missouri River, crops in Montana, North Dakota and Nebraska may be damaged. However, it should be noted that the European Union, Russia and Canada are the world leaders in oat production. The United States is the largest importer of this type of grain, while China and Mexico are in the second and third places.
On the daily timeframe, OATS: D1 breached up the resistance line of the falling channel and the 200-day moving average line. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of a reduction in world harvest.
Summary of technical analysis
Position Buy
Buy stop Above 281.5
Stop loss Below 258.5
There is severe flooding in the Midwestern United States, which can damage cereal crops. Will oat prices rise?
Because of the severe flooding on the Missouri River, crops in Montana, North Dakota and Nebraska may be damaged. However, it should be noted that the European Union, Russia and Canada are the world leaders in oat production. The United States is the largest importer of this type of grain, while China and Mexico are in the second and third places.
On the daily timeframe, OATS: D1 breached up the resistance line of the falling channel and the 200-day moving average line. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of a reduction in world harvest.
- The Parabolic Indicator gives a bullish signal.
- The Bollinger bands have narrowed, which indicates low volatility. The upper Bollinger band is titled upward.
- The RSI indicator is above 50. It has formed a positive divergence.
- The MACD indicator gives a bullish signal.
Summary of technical analysis
Position Buy
Buy stop Above 281.5
Stop loss Below 258.5