Chart of the Week: Minneapolis Wheat

About this chart: This is the monthly continuation chart of Minneapolis wheat. You can see the low in 2016 ($4.92) and the next major low in 2019 ($4.69). The most recent low ($6.69) came in late May 2021. From there, prices rallied to $9.44, the July high. Prices corrected lower to $8.61, the September 2021 harvest low. This week, futures rallied to new contract highs. The next major resistance is $10.35 (the July 2012 high) and then $11.20 (the 2011 high).  [Chart source: DTN/ProphetX]

What this means for you: The news is bullish. Funds are long 16,000 contracts of Minneapolis Spring wheat. Be careful, and get ready,  I expect a short-term top in November prior to the likely sell-off into first delivery day against the December contract in late November. Funds will not hold long positions into delivery.