- The Barchart National HRW Wheat Price Index completed a bullish key reversal during May, indicating its long-term trend had turned up.
- Similarly, the Barchart National Corn Price Index completed a bullish spike reversal during May, a year after completing a bearish 2-month reversal that turned the long-term trend down.
- If the cash markets are telling us long-term trends have changed directions, the next step will be for noncommercial traders to start buying again.
A good friend read my mind first thing Thursday morning. Before the first cup of coffee was finished, I received a message asking the question that kept me awake as May came to an end and June began, “Do we trust the bullish spike reversals seen on the cash index charts?” My friend was talking about corn, where the Barchart National Cash Price Index (ZCPAUS.CM), the weighted national average cash price, posted a bullish spike reversal on its monthly chart while the Barchart National HRW Wheat Price Index (KEPAUS.CM) completed a bullish key reversal on its monthly chart. This tells us the long-term trends of the intrinsic value(s) of the corn and HRW wheat markets have turned up, exactly a year after both had signaled the start of long-term downtrends on those same monthly charts.
