Spring wheat today looks awful on the charts.
It’s not easy being wheat. Of the spring variety.
Nothing else looks as bad today.
I’ve been away on holiday for the past 10 days, until yesterday, so catching up on the markets is always a little intimidating when i get back, and such it is this time. So much happens in a week.
Anyhow, looking at my charts this morning I saw the big drop in spring wheat, but not a big drop in other types of wheat or in other crops, and wondered what the heck was going on. Some big news event? Some report?
So I did what any self respecting clued-out reporter would do: called a couple of people who might know and asked them.
The story I got was that it’s just spring wheat finally submitting to the slump that’s hit corn and Hard Red Winter Wheat in Kansas City. “It’s become overvalued. The spread got too big,” one trader told me.
Boy, that’s a heck of a single crop correction. Makes an ugly chart. Hopefully it’s just a correction and will stop. And hopefully the other crops will bottom out here.
But with copper slumping, one has to wonder if the commodity complex is deflating in a bigger way.