Time For Put Options As Wheat Supplies Abundant, USD Strength Weighs
Jun, 28th 06:33
Britain’s vote to leave the European Union has contributed to pushing the greenback higher against most of its counterparts, which has made it harder to sell U.S dollar-denominated wheat, as the commodity becomes more expensive for non-dollar based importers. Moreover, according to reports from the U.S. Department of Agriculture, U.S farmers have finished harvesting 45% of the winter crop – 20 percent above the previous week’s reading. The large yields from the U.S winter crop will add to plentiful world production, which is very likely to put downward pressure on the wheat price. On the hourly chart, parabolic SAR continues to signal a downtrend while the long-term SMA 14 is still above the short-term SMA7, solidifying the bearish trend .
Buy Digital Put Option from 453.37 to 456.65 valid until 20:00 July 1, 2016
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