Cycle is down for Wheat until August 31st.Wheat has just finished a corrective move and because of its nature (Wheat is a very volatile instrument) it may seem to an untrained eye that the trend is up. However, that is not the case in my opinion - cycle is down. To approach this trade now we go long September PUT options, strike 475. The approximate price target is 435 at the point when the cycle bottoms. Later on I will upload ideas giving out recommendations to trade the futures contract, for now we want to limit our risk. Fundamentally, Russian farmers this year are expecting a record crop since the late 1980s, according to the head of Russian agricultural department (Russia is the largest producer and exporter of the grain). Despite this fact, I would avoid reading the news regarding wheat as a trading strategy. There is a lot of misleading information and I just read it for entertainment, not for trading. Please do remember that futures trading involves a substantial risk of loss and is not suitable for all investors.
Don't listen to the noise and I know that you will make a success.
Have a good weekend, fellow traders!
