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Wheat goes parabolic, suggest market top close

March 3, 2022 by Jim Wyckoff

The wheat futures markets this week soared to 14-year highs above $11 a bushel. The wheat markets have gone “parabolic” in trading parlance, meaning prices shooting nearly straight up. History shows that during major bull runs this type of price action many times produces a “blow off top” and the bulls press their case and then run out of gas. And if the wheat futures markets are near major tops, then very likely so are corn and soybeans. Importantly, grain and all commodity market traders need to keep an extra close eye on crude oil. If crude oil futures prices keep trending higher, that would continue to be a bullish booster for the raw commodity market sector. And if crude oil shows solid signs of topping out, so, too, likely would many other commodity markets. Stay tuned! —Jim Wyckoff

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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