Both July and September delivery wheat futures made bottom extensions yesterday and can now be bought. Here is September:
Price movements in the grain markets are not strongly correlated with each other but some moves do occur in common. Accordingly, when we see a signal in one, it is worth looking at the others to see if they too are likely to be affected. We reported a top extension in soya meal in the May 2nd edition and noted that this would probably have bearish effects on other grains. Since then, wheat and corn have both dropped by more than 10% while soya meal (and beans) only dipped before making new highs.
So it will probably be here. Wheat will probably rally from hereabouts but the strong demand from China for soya meal may mean that the bigger upward move will be in that contract. We may get a signal or some sort in soya meal, oil or beans to confirm this but it is possible that this is the only warning we get. We will of course advise as soon as we see anything.