Kansas Wheat Amongst Several Grains Entering Seasonal Weakness

Kansas Wheat in amongst several Grains that are flashing overbought conditions AND is entering a seasonally weak period. In addition, the chart below suggests that a retracement to the upward trendline is likely. The KC Wheat (H21-K21) calendar spread has profited in 13 of the last 15 years when sold on 10/29 and bought on 1/28. In addition, the outright March contract has dropped in 16 of the last 18 years over the next 15 trading days after the 10/29 close (today). This convergence of events makes for a good risk reward on a calendar spread. More aggressive traders should consider the KC Wheat (H21-N21) or even the (H21-U21) calendar spreads. I already have exposure to these further out months so I'm opting for the more conservative (H21-K21) spread.

)