The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Kansas City wheat futures traded lower today in another day of technical liquidation, according to traders. Initial weakness was triggered by outside markets, with equities trading lower again this morning on global economic concerns.
The dollar rallied out of its 3 year cycle low. This has created deflation in all asset markets, including stocks and commodities. All the grains are stretched far below the 200 day moving average and should bounce rather strongly as the dollar puts in an intermediate cycle low.
Then dollar is in the timing band for a daily and perhaps intermediate cycle low. This should help out stocks, commodities, and yes, corn achieve a bounce to the 200 dma at $6.45. That will be about it as deflation resumes.