Wheat Prices Hit 5 Month Highs
Michael Seery of Seery Futures - InsideFutures.com - Mon Feb 12, 4:51PM CST

Wheat Futures--- Wheat futures in the March contract are sharply higher this Monday afternoon in Chicago up $0.15 to close at 4.64 a bushel as I was recommending adding another position on the close as wheat has now broken out to a 5 month high.

The original recommendation stood around the 4.40 level as adding to winners and exiting losers is the proper way to trade over the course of time in my opinion & if you took all of these recommendations place the stop loss at 4.38 as that will remain at that level for another 5 trading sessions so you will have to accept monetary risk at this time.

One interesting fact about this wheat market is large money managed funds are still short about 83,000 contracts as I assume they did some short covering in today's trade, but they can add more fuel to the fire as they are actually bullish Kansas City wheat which was sharply higher today as well as this trend clearly is the upside in my opinion.

Prices are trading above their 20 and 100 day moving average with the next major level of resistance all the way at the 4.80 level and I think that could be touched possibly in this week's trade as I am also recommending bullish positions in oats and corn which were higher once again today hitting multi-month highs as the grain market has turned bullish here in the short term.

There are major concerns about a drought in the southern Great Plains which is getting worse and worse on a weekly basis and if this persists look for wheat prices to cross the $5 level very quickly as volatility has come to light which is excellent to see so stay long.

TREND: HIGHER

CHART STRUCTURE: SOLID

VOLATILITY---INCREASING

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