Paris Milling Wheat Futures leads global wheat higher on India ban and weather

There are plenty of advantages to December corn futures with the funds maintaining a bullish stance and wheat soaring higher and showing no signs of rationing despite record high prices. Expect volatility to remain elevated and sharp corrective breaks possible; but global wheat supplies continue to shrink, making corn all the more valuable, as even feed wheat supplies are now too expensive.

Since hitting a new multi-year high of over $116 a barrel in the first week of March, July crude oil has moved sideways in a choppy fashion. It appears to curl into a symmetrical triangle chart formation. The net effect would appear to be an ultimate breakout of this pattern. On the upside, this breakout zone should be around $110-111 a barrel, and on the downside, below $98. We’re very close to that bullish level, and as US diesel prices continue to make new highs, it looks like crude oil has some upside potential. The market is far from technically overbought, and the path of least resistance appears to be higher from here. It would also strengthen the markets for corn and soybean oil, as their use in biofuels would accelerate.

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The comments above are for educational purposes only and do not constitute specific trading recommendations. Buying and selling grain or grain futures or options involves substantial risk and is not suitable for everyone.

Dana Mantini can be reached at [email protected]

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