Recently, I blogged about how the wheat futures had already broken down, but the current spot price was still above support but looked to go lower. Well, look at the volatile response wheat has had recently.
The spot price has broken down out of the six month range, popped back into, then right out of the top of the range all within a few weeks! So it has broken the six month range on both sides in a few weeks. Talk about wild volatility!
In general, wheat has moved opposite the $USD. Makes sense as that is what most commodities have done. Interestingly, in the last few weeks, they both have surged higher together which is very interesting.
We'll keep watching, but maybe this will show up in trend changes for some of the Agriculture commodity stocks.
Good Trading,
Greg Schnell, CMT
