The Barchart National HRW Wheat Price Index (HWPI, weighted national average cash price) extended its major (long-term) downtrend to a low of $5.6062 during October before closing at $5.6389, down 22.71 cents for the month. The index continues to move lower despite monthly stochastics showing an extremely oversold situation. Theoretical Positions: None at this time. Remaining cash bushels were likely sold during the August selloff. We will wait for a bullish reversal, possibly during November, before going long the market again.
The Barchart National SRW Wheat Price Index (SWPI) remains in a major downtrend, though consolidated during October. With monthly stochastics already establishing a bullish crossover below the oversold level of 20%, the stage is set for a possible bullish reversal in SRW wheat. Theoretical Positions: All 2023 cash bushels should be sold. We will wait for a bullish reversal, possibly during November, before going long the market again.
The Barchart National HRS Wheat Price Index (HSPI) remains in a major downtrend, though like the SRW market consolidated during October. Theoretical Positions: Cash bushels were sold at harvest despite monthly stochastics sitting well below the oversold level of 20%.
The Teucrium Wheat Fund (WEAT) remains in a major downtrend, though consolidated during October. This could lead to the completion of a bullish reversal pattern over the coming months. Theoretical Positions: None at this time.
