One of the things the world keeps talking about is food inflation. Well, wheat futures are breaking to new lows. The chart below is the current month contract for $WHEAT. However, the futures curves all look weak and are getting weaker.
Obviously the next thing to look for is other food commodities. Soy is powering higher, but the weekly bars are wide and loose. Corn has been falling out of bed lately (OOPS, it hasn't seen a floor yet!) Sugar is making 16 month lows.
John Deere is trying to hold above the 40 week. CAT opened the week below its 40 week MA.
So commodities continue to plummet. First Gold, then Oil, now Copper, and the food commodities are all looking weak. Keep in mind that the deflationary signals have turned green. The hardest part is trying to make money when things are deflating. Be aware. The trend continues. Keep watching the various breakdowns, but the industrial metals have been weak and are getting weaker. The Canadian $TSX is a commodity exchange.
Good Trading
Greg Schnell, CMT
