Producers Should Sell Wheat

At the time of this writing Corn and Soybean values are higher on the day and wheat values are significantly higher and testing the old high in the July contract of 481, 24 cents higher on the day. A sometimes used technical indicator is Standard Deviation Bands. When I see a market move that is outside what has been recently trading I look to SDB calculated 3 standard deviations from recent moving averages. If the current value is at or over that standard deviation calculation, something should be sold (on an upside move). Today is one of those days in July wheat. Producers should sell July wheat today. Going forward, we will wait to see where it closes today and will need to see how wheat is treated after Friday’s USDA report, then reset targets based on whether we close above or below the 481 high.

There is no new advice for Corn or Soybeans other than wait until after Friday’s USDA report. Let the market digest the numbers and look at the 6-10 day forecast for direction going into the first week of July.