Wheat Futures--- Wheat futures in the December contract continue to plummet down another $.13 at 4.75 a bushel as crop estimates are going higher pushing prices to 4 year lows and if you took my original recommendation and went short at 5.42 a bushel place your stop above the 10 day high which currently stands at 5.34 and that stop will be lowered dramatically in the next couple of weeks as the trend certainly is very strong to the downside as prices are trading far below their 20 and 100 day moving average telling you that the trend is lower. The chart structure in wheat will start to improve dramatically in the next several days as it looks to me that the retest of 4.50 a bushel in the cards possibly next week as excellent crops around the world and a strong U.S dollar continues to pressure wheat and the rest the grain complex and I don’t think prices are going to rebound in 2014.
The trend is your friend in the commodity markets and the trend is very strong to the downside but if you missed this trade sit on the sidelines and look for another market to enter as the horse has left the barn. Wheat futures have dropped about $3 since early May as this bear market seems to be relentless as many of the commodity markets continue to hit new lows in 2014 due to oversupply and lack of demand as all the interest is in the stock market currently which hit all-time highs once again so continue to place your stop at the 2 week high as this trade still has room to run in my opinion. TREND: LOWER –CHART STRUCTURE: IMPROVING
