Having ended Wednesday at $314.25, CME Oats dropped to $300, hitting its lowest point in 2 years. It later recovered $13 and trades at $313.
CME Oats is currently trading at $313 following the release of Core PCE Price Index (MoM) (Mar) data from the United States.
United States Pending Home Sales published yesterday at 14:00 UTC came out at -5.2%, falling short of the 0.5% projections and continuing its decline from the previous 0.8% figure. GDP in United States fell short of market expectations (two) with a reading of 1.1, continuing the decline from the previous figure of 2.6.
Amid the market gloom, United States Core PCE Price Index (MoM) (Mar) released today at 12:30 UTC with a figure of 0.3, while the previous figure was 0.3.
As the trading day comes to an end, chart analysis indicates Oats could begin to recover as it approaches significant support, now $6.33 away from $306.67. Dipping below could be an indication that further losses are ahead. Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Momentum evaluation shows that the RSI is a momentum oscillator that measures changing price movements on a scale of 0-100. In Oats's case, the index has fallen below 30, signalling that the asset is oversold. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at $318.39, a low enough level to, generally, suggest that Oats is trading below its fair value.
All in all, the technical analysis suggests the Oats future has no clear-cut direction.
Positive performances can be seen by looking at other Grains markets as Rough Rice gained 1.67% and is currently trading at $17.34. Soybeans gained 1.1% and is now trading at $1,419.25. Corn added 0.47% to its value, now trading at $584.25.
Having set a significant high of $705.75 11 months ago, the CME Oats future is trading 55.47% lower.