What’s the hold up? Just a heads up on Wheat. Everybody and their grandma eats wheat. I want to point out the back month future contract labeled “U” or September. Keep an eye on this level. Coming into this contract we can see some contango (AKA:forwardation) and it has major support at 440 which kinda like 420ish on the front month. This level on the “U” contract is like a concrete block in my view. Check it out.
Now let’s just check out what the big funds are doing when looking at the COT report.
Just a week ago the funds were shorter than ever and were making all the bulls bleed to death. But if we look at the last move we can see a COT reversal. Which is looking nice for some possible bullish action. So as much as the funds were short wheat the price action held super strong at 440. It can not break down!, as though it seems. Last week we had a massive rally because of crappy weather, which I don’t think has fully been reported as far as damage to the crop, but then the profit takers came in which I think are just the funds jerking the small guys around. Also other fundamentals like a much smaller 2017 planting acreage is in play. So, Wheat,, LETS GO!
So that’s it. We’ll be keeping a close eye on this market on #TradeBuddiesLive. Although it COULD crash, I think it’s a really nice long play here real soon and I think the sell off the last couple days is complete horse malarkey.
-BUY ZWU7 – $440.25