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Wheat Trading Opportunities Wheat is a well-known soft commodity that is vital for any kind of bread product. It also has important uses for the feedstock for cattle which is vital in economies with large agricultural sectors. The supply and demand for wheat can be volatile with changes occurring for a multitude of different reasons.

The most recent spike in price was caused by the Russian and Ukraine Crisis. The soft commodity saw a large spike largely due to the economic sanctions placed on Russia and supply chain pressures that the war caused in Ukraine. Both countries are large exporters of wheat with Ukraine producing about a fifth of the world’s high-grade wheat and 7% of all wheat across the world.

Therefore, the supply shock had a large effect on the supply available driving up the price. Some of the other countries that produce the bulk of the worlds supply include China, the USA, Canada, Australia, and India were able to benefit from the higher prices. A strong USD Like all commodities, wheat is quoted in USD.

This means that when the USD is strong, the price of the commodity becomes weaker because the producer must sell their produce for less. Due to recent market volatility the USD has risen as investors have looked to the USD for safety. This has in turn negatively affected the price of wheat The Price of Oil The price of oil plays a role in the overall price of wheat.

This is because oil is an important input cost for wheat. Oil is needed for both the transportation and the actual farming of wheat. As the price of oil increases the costs must then be offset by the wheat producers who then raise their resale price.

Therefore, when forecasting what the price of wheat may do in the future, assessing the future of the price of oil can be a helpful tool. Emerging economies Countries with developing economies tend to be higher importers and consumers of wheat. In addition, countries in the Middle East and Africa import lots of wheat because they do not have an environment that is conducive to producing wheat.

For instance, in countries in the desert such Egypt where there is little water, and it is exceptionally dry such as Egypt very little wheat is produced. This explains why Egypt is one of the highest exporters of wheat and if the demand from these countries it would likely impact on the overall price. Technical Analysis The price chart of wheat tells an important story.

It can be observed that the wheat futures initially spiked at the beginning of the war in Ukraine as the market reacted to the initial supply shock. The price then moved into a tight consolidation tightly before breaking out towards the highs. However, this breakout failed, and was unable to rise above the key resistance level at $1354.

The price of wheat then entered a downward trending channel where it currently remains. The price has also broken down below the 200 Day Moving Average which does not bode well for bullish moves in the short term. Before this break down, wheat had not fallen substantially below the 200-day moving average since June 2020.

On the other hand, the price is currently sitting in the top half of the channel. The price may be able to break out of the channel to the upside. In addition, it is also sitting in area of long-term support between 750-850 USD.

Wheat Future Contract CFD’s can now be traded on MT5 on GoMarkets platforms

In my previous article we discussed, what is an EA and their benefits. To read up on their disadvantages please follow the link to an article written by my colleague Daniel Vary here. Today we are going to discuss how you would use a VPS to enhance the use of an EA, especially if you are running various EAs simultaneously.

What is a VPS? A virtual private server (VPS) is a virtual program sold as a service by an Internet hosting service. The virtual dedicated server (VDS) also has a similar meaning.

A virtual private server runs its own copy of an operating system (OS), and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes it is functionally equivalent to a dedicated physical server and, being software-defined, can be created and configured much more easily. Depending on the resources that you choose, the location of the server, the virtualization technology, and the quality of your service, the price of your VPS will change.

GO Markets provides a VPS to all its clients, it’s a free trading tool we make available which would otherwise come with a monthly fee. Why would traders use a VPS and what advantages do they offer? As a trader who is looking to incorporate an Expert Advisor in their trading strategy, they may well need the use of a VPS, this helps to facilitate a smooth working condition for one or several EAs running simultaneously and to run as effectively as possible.

An Expert Advisor is a tool that is programmed to work 24/7, it is imperative that the running of your trading system and the vessel which it operates in i.e. computer or laptop is not disrupted, go offline or lose power, otherwise you will find that your EA won’t be able to operate, open, close trades or do whatever you intend to do with it. A simple advantage to think about, is purely that a VPS enhances the EAs capabilities and with it, it may improve your trading goals. A VPS facilitates a smooth and quick link to a reliable server, that means it keeps the connection alive for as long as possible to allow the EA to do its job, getting access to a reliable server should be your highest priority, especially given the nature of how fast paced markets like Forex markets can be.

Choosing a VPS provider? There are few important points that you need to look into when choosing the type of VPS you want to acquire. There are some key features to look understand to get a VPS that will fit within your EAs specifications, your trading strategy and style.

We will look at the specific features of the VPS shortly but first you need to consider which Operating System OS you like your VPS to run on, Windows or Linux? Linux is an open-source operating system and is cheaper than windows. The Windows VPS hosting can be preferred if you are developing in.NET or if you have applications that are designed for the Windows platform.

RAM – It stands for random-access memory. It means that your computer RAM is essentially short-term memory where data is stored as the processor needs it. The Ideal RAM for a VPS for this purpose would be 4 GB.

If you are running several EAs, which use up more than the available RAM, then may need to look for a bigger VPS or simply add another VPS on another account. CPU – Central processing unit, is a principal part of any digital computer system, generally composed of the main memory, control unit, and arithmetic-logic unit. They have proved to work smoothly even at peak times depending on the quality and size of the processor.

You need to have 14nm architecture with a multi-core for multitasking but a 6vCPU works in most normal cases. Hard disk HDD – The traditional hard disk storage space will always be bigger and more inexpensive. But a solid-state drive is recommended for a VPS hosting.

They are fast at rebooting; the performance is certainly huge and transfer speeds are more than the traditional disks. The SSDs are resilient during power failures, which makes them a perfect fit for VPS hosting. A faster hard drive is necessary because even if the RAM and CPU are fast you need an equally faster storage drive to service those requests Go Markets VPS As a valuable client of GO Markets, you can get access to a VPS once you have a live account with us.

Simply, by applying for one via your Client Portal. The VPS runs on both MT4 and MT5 systems and allows you to execute trades using EAs, quicker and easier. GO Markets offers free monthly VPS access to clients completing a minimum trade volume of US$1m per calendar month (approx. 5 round turn FX lots).

If this volume is not met, a VPS service fee will be applied per month which will be charged from trading account. Please see below the specifications of our VPS below. Our VPS is a Shared Hosting, managed Cloud based solutions running on Windows 2016.

Sources: Wikipedia, Babypips, GO Markets, operavps.com, www.websitebuilderexpert.com,

Expert Advisors are programs which are configured to execute trades or read market price movements. When a parameter is met or triggered, it commands the EA to open or close trades on your behalf whilst you are otherwise engaged or sleeping. EAs are compatible to be used on the Metatrader 4 and 5 systems.

Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of computers relative to human traders. In the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders.

It is widely used by investment banks, pension funds, mutual funds, hedge funds that may need to spread out the execution of a larger order or perform trades too fast for human traders to react to. It is now also widely available to retail clients. A study in 2019 showed that around 92% of trading in the Forex market was performed by trading algorithms rather than humans.

What are the advantages of using EA’s? Timesaving – The Forex market is open 24 hours. As a trader you are always looking for an opening in the market for you to execute an order, however, as a human you need to be able to sleep to operate normally, especially if you want to live a healthy life.

With an EA in place, you can time the market, set alerts, watch various markets simultaneously, set open and close trades yourself or allow it to open and close trades on your behalf. For a lot of forex traders who’d like to profit from market movements during a particular trading session but are stuck in a different time zone, using an expert advisor means that they don’t need to worry about trading sleep for pips. Emotionless Trading – The market is wholly affected by emotion, whether the emotion makes you want to buy or sell an asset is down to how you understand the information or how you perceive the charts.

With emotion you can either be gripped in a circle of greed or a loss of confidence which can cloud your thinking and deviate from a trusted strategy. An EA does not suffer from these as it just needs to meet various mathematical parameters to work. Expert advisors are wired to stick to system commands and take valid trade signals, without feeling pain from losses or joy from wins.

Backtesting - Another advantage of having an expert advisor is the ease of conducting backtests, particularly on an MT4 platform. In fact, Babypips have a short tutorial on how to backtest and EA on MT4 and you’d be surprised to know that it just takes a few clicks to see how a system fared over several years. This is mainly used, to make sure that the EA you have acquired, works in the way you want it to work before letting it loose on your live account with real money at stake.

Quick and Flexible – EAs can open and close trades in a blink of an eye; whilst humans tend to second guess these actions by taking price movements and reading indicators, an EA is built to take these decisions with mathematical precision. Depending on the EA you are also able to check multiple markets and have various EAs on one system at the same time. Some of these features are also extremely useful for short term traders who trade on smaller movements of 1 – minute to 5 – minutes charts.

Human Error and Accessibility – Human error have cost many a trader in years past, opening the wrong direction on trades, making the size of the position too big or too small, or opening a trade whilst misreading the technical can all have a negative effect on your trading experience. Having an EA can limit these errors as EAs are programmed to your specifications and they would never deviate from that, unless they are not set properly to begin with, but this is the reason why you would always backtest! EAs are available with a decent variety and with great accessibility to these programs, it is no hard to see why they are becoming the automated popular choice for traders.

In my follow up article on this subject, I will talk about the use of a VPS and popular EAs. If you like to incorporate your MT4/5 systems with EAs, you can talk to one of our Account Managers who will be happy to talk you through the process, feel free to contact us on +61 3 8566 7680 or email me directly on [email protected] Sources: Tradersunion.com, IG, Wikipedia, Babypips.

The USA and other Western nations have intimated that they are planning to block Russia's access to its international stockpile of gold. Russia has so far been able to use gold to support the Rubel as a tool to reduce the impact of sanctions. Russia has been able to trade gold assets for more liquid foreign exchange that have not been subject to current sanctions.

Tech stocks continued their momentum overnight as the Nasdaq closed at its highest level since February 9, up 1.93%. Intel was a top performer overnight as it rose 6.94% on reports that it may assist NVIDIA corporation in chip manufacturing. Uber also had a stellar night increasing by 4.96% after it reached an agreement to list NYC taxis on its app.

The Dow Jones closed 1.02% higher as material stocks performed well. The S&P 500 reflected the positive momentum as it closed the day up 1.43%. In Europe, the FTSE had a relatively flat day.

The material sector performed strongly, supporting the index as it closed up 0.09%. The DAX also had a relatively flat day finishing down 0.069%. Commodities Brent Crude oil failed to carry on its rise as it dropped back 2.69% to $118.14.

Although the price is still holding above the $115 level. The gold price saw a mini spike out of its consolidation as it jumped by 0.69% to USD 1957.41. The move can be somewhat attributed to the potential for new sanctions on Russia.

Natural Gas had another bumper day as it rose by 5.81%. The price extended break out as it closed at its three-month highs of $5.464. The USA may be forced to increase its exports to Europe to offset any disruption in supply from Russia.

Cryptocurrency Bitcoin performed solidly overnight. It is currently testing the highs of its recent range and as the BTC/USD approaches the $46,000 resistance level. The pair closed at $44,091, a 2.56% increase, at 22.36 GMT.

Ethereum has kept its strong week going with another 2.59% rise holding the $3118 at 22.42 GMT. The ETH/USD has seen a recent period of consolidation before overnight breaking above the trend line. The JPY continues to be smashed against most other currencies.

The USD/JPY rose by 0.97% to 122.324. The GBP/JPY also saw a huge move moving 0.88% to close at 161.330. The AUD/USD had a mixed day.

Initially, the currency pair sold down, however it recovered later to close at 0.7512. The EUR/USD has seen a settling of its price as Ukraine and Russian conflict has settled. The pair finished trading at 1.0998 USD.

Global indices were choppy overnight, mainly finishing lower on the back of failed peace talks and Russia continued advances in Ukraine. According to reports from the French government, the Russian president Vladimir Putin intends to take the country by any means and that “the worst is to come”. The reports sent the FTSE 100 down 2.57%.

The decline was further aided by the removal of Russian equities from the index. In addition, the DAX followed dropping 2.16%. In the USA the NASDAQ closed down 1.56% as the tech sector saw more selling.

The FANG stocks were all down continuing from what has been a volatile week. The Dow Jones and the SP500 performed a little better but were still up and down during the trading session. Overall, the S&P500 finished down 0.53% and the Dow Jones 0.29% respectively.

Money continues to flow into commodities as pressure is growing for Western countries to ban Russian oil and gas imports. Gold continues to provide strength in the volatile market holding $1936 USD per ounce. Oil touched $119 USD a barrel before tapering to $110.

Nickel was also a strong mover jumping 6% to $27,815 its highest level since April 2011. Wheat continued its rise another 5.46%. Palladium, another commodity in which Russia is a large producer, is also up 3.2% to $2,753.68 by 12.43 GMT.

Palladium is a crucial metal needed by Automakers for catalytic converters to curb emissions. Iron Ore showed some strength increasing by 5.5% to $153USD per tonne. In currencies, the BTC/USD pair lost momentum at $42,541 USD down 3% at 10.45 pm GMT.

Ethereum is also down 4.48% over the last 24 hours. The EUR/USD fell to fresh levels of 1.1032 its lowest level since May 2020. The markets remain volatile and very reactive to news coming out of Europe as the weekend approaches.

US indices had a bumper day of trading as the Federal Reserve increased interest rates by 25 basis points. The Reserve is also expected to raise rates to between 1.75% and 2.00% by the end of the year, with 7 increases expected till the end of 2022. The Federal Reserve made it clear that they are doing their utmost to fight inflation.

Jerome Powell also indicated that the economy shouldn't need to enter into a recession. Whilst the Federal Reserve lowered economic projections for 2022 and increased inflation most of this had already been priced in. The Nasdaq finished the very strong session up 3.77% as tech stocks rebounded after initially selling down on the Federal Reserve’s announcement.

It was supported by the Dow Jones and the S&P500 which were up 1.55% and 2.24% respectively. In Europe, the FTSE had a solid day rising 1.62% and the DAX performed very well increasing by 3.76%. The Chinese stock market both in Hong Kong and on the mainland was also roaring yesterday on the back of a commitment from China’s State Council to sure up and introduce policies to boost its economy.

The CSI 300 index gained 4.3% and the Hang Seng index jumped 9.1%, its largest jump since 2008. This may provide some confidence for the region. Commodities Commodity prices continue their retreat from their highs a few weeks ago.

Brent Crude Oil continues to hover below 100 USD finishing the day at 97.96 USD a drop of 0.74%. Gold was able to hold its support level at 1917 USD per ounce and bounced after initially dropping below 1,900 USD due to the interest rate announcement. Natural gas continues to tighten its price range and increased by 2.80% Cryptocurrency Bitcoin had a high volume buying day as buyers stepped up and the price of BTC/USD increased by 4.83% to 41,202 USD.

Bitcoin remains rangebound however the volume increase indicates attention may be returning. Similar results occurred for Ethereum with the ETH/USD increasing by 5.60% to 2,766 USD. FOREX The USD was weak against most other currencies following the Federal Reserve's announcement.

The AUD had a strong day backed by its commodities moving up 1.29% against the USD. The EUR/USD and GBP/USD both reacted positively to Federal Reserve’s announcement, with them moving up 0.71% and 0.81% respectively. Against the CHF the USD was able to hold up relatively well at the 0.9400 level.

The market will likely continue to react to the news from the Federal Reserve as the week draws to an end.