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Wheat and Soybean prices are up 30% in the past few months, reflecting the extreme drought conditions. The Power of the Pattern highlighted breakouts earlier this month (see grain breakouts)
Now Beans are up against a 161% Fibonacci extension level and Wheat is at the top of a channel, with Bullish sentiment very high in the grain complex.
The forecast is for continued hot and dry weather in the mid-west. Could traders cool off grain prices for a while at these key resistance levels? Stay tuned because if traders break these resistance line, grains add a good deal more to their prices!