The wheat sub-sector (HRW, SRW, and HRS) has taken center stage of late as a new generation of “traders” are introduced to wheat markets via predictive market websites.
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Technically, daily and weekly charts of futures contracts are a mess, putting the spotlight on long-term monthly trends for Exchange Traded Funds.
Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis. Fundamentally, the more heavily traded SRW market is a conundrum, providing little to no support to long-term bullish technical factors.
As some of you know, I grew up on a smallish farm in south-central/southwest Kansas (the description depends on one’s view of where the western part of the state begins). Knowing I wasn’t going to take over the family farm, for myriad reasons including I wasn’t cut out to drive a tractor from one end of the field to the other, I took my lack of talents into the trading side of the business instead. Eventually, I found myself as the merchandiser for a local grain merchandiser in the central part of the Wheat State (Kansas). And it was this experience, and the frequent nightmares associated with my cash wheat position, that led me to the investment side of the industry. It also taught me the true meaning of wheat’s variety of nicknames including The Cockroach of the Grains Sector and Poverty Grass, as I discussed recently.
