Oil rally stalls while Chicago wheat and sugar prices slip towards multi-month and year lows
Outlook on Brent crude oil, Chicago wheat and Sugar #11 ahead of US employment data releases.
Brent crude oil price stalls below three month high
Last week the Brent crude oil price shot up to 84.24 as hopes of a Gaza cease fire evaporated and OPEC+ announced an extension of its output cuts by for another three months. This high was made close to the 84.58 late November peak. For now the oil price is seen consolidating between the key 84.24 to 84.58 resistance area and the 200-day simple moving average (SMA) at 82.03. Below it the February-to-March tentative uptrend line at 81.70 may also offer support, were it to be revisited. While the late February low at 80.25 underpins, the medium-term uptrend remains intact.
Chicago Wheat prices retest major support
Chicago wheat front month futures have once more slipped to but so far held at their key 557 to 552 September and November lows which continue to offer support. Were a slip and daily chart close below the 552 September low to be seen, though, the late September 2020 low at 539 would be targeted. While no bullish reversal takes the wheat price above its 22 February high at 594, downside pressure should be maintained.
Sugar #11 slips back to nine-month low
Front month sugar futures prices plummeted from late last year’s 12-year high by close to 30% to their 19.91 late December low which is once again in the firing line amid ample supply. The advance to the 23.86 January high is likely to have only been a corrective move higher with the long-term downtrend re-asserting itself. En route to 19.91 lies the psychological 20.00 mark which may offer interim support. Resistance sits at the 22 February 21.57 low. While the front month futures price remains below last week’s 22.92 high, the medium-term bearish trend will remain intact.
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