Wheat

Wheat is looking to be an attractive trade.

I may look at opening a small position over the next couple of days.

Commodities eliminate the risk around a company going bankrupt etc. Also, food, will never go out of fashion. I would have liked more volatility and the constant down trend could make trading around this position difficult for a while. On the other hand, should the trend change direction, there may be a prolonged upward trend which would be nice.

The ‘futures’ contract shows more up/down volatility, which makes me think that the trend may be in part a function of the instrument [ETF] rather than a pure function of wheat itself. Therefore I’ll look at it for a few days and see whether the ETF correlates to the futures contract in any meaningful way. If not, then as a trade, it probably won’t work that well.

* Having just checked more closely, the ETF mirrors the futures contract, so no issues there.