Rice is key for many diets around the world. Reports are cropping up that food inflation is causing some major challenges around the globe. The technical pattern in Rice finds itself at a very important level right now.
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I shared last week that AG/Grain etf DBA was reaching a key resistance level and that it would be prudent to harvest grain positions, since DBA has rallied 20%+ after the breakout. (see post here)
The odds are low that food inflation is behind us! What Rice does at (1) should have much to say if some food prices might soften or if some basic food staples are about to breakout and move all the higher, in a rapid way! Keep an eye on Rice for global macro issues and a clue to what U.S. grain prices next big move might be.
