There is a seasonal trade which has wheat carving out a low in July. This may be happening. Below is a chart of the spread being long December wheat and short December Corn.
The funds are net short wheat and corn now. They have been short wheat for the last 6 months.
If we get the rains and corn falls, this may make this spread widen from its current level.
Below is a chart of long wheat/ short corn spread. That spread was a 148 in June. Its back above 180 now. It could go to 2.10 or even 2.25 . This looks to be a good seasonal and technical trade.
