Wheat at 10 year lows, will it go lower?

Well, here we are, trading the 377 value I talked about last week. The problem with technical analysis is that each time new highs or lows are made we simply look for the next number higher or lower to find support which can be very frustrating for those watching the recommendations. We now have additional downside risk of about 30 cents, however, I do not recommend that farmers who have wheat in DP sell it at this level. We've talked about basis contracts and min price contracts but we have many customers that do not understand the mechanics of either and for those customers, you should simply recommend that they allow it to remain in dp and accept the charges. A quick rebound in price that would cover the first couple months charges is highly likely.