[
Agricultural commodities have seen intermediate-term momentum shift positively as they advance from long-term lows. This has been an emerging technical theme that we are attracted to with volatility having picked up in the equity market. Last month on Fast Money and in the Fairlead Strategies Idea Generator , we highlighted agricultural commodity ETFs like the Teucrium Corn Fund (CORN) and the Invesco DB Agriculture Fund (DBA) as oversold opportunities. Agricultural commodities look ready to extend higher following a couple weeks of healthy consolidation, so we are revisiting the charts to leverage a bigger counter-trend move. An example of one agricultural commodity with a bullish momentum shift is wheat, expressed via the Teucrium Wheat Fund (WEAT) . Note WEAT recently cleared initial resistance at its 10-week moving average, resulting in upward shifts in the weekly MACD and stochastics. The bullish intermediate-term shift comes after a successful test of long-term support going back to 2019, near $4.90. The stochastics are not yet overbought, increasing the likelihood that the up-move has more room. The weekly cloud model (shaded area on the chart) is key resistance for WEAT, currently near $6.20, above which WEAT would reverse its long-term downtrend. An alternative way to express a bullish view on agricultural commodities is via equities with exposure to agriculture. One name in the S & P 500 that qualifies is crop chemical company, Corteva (CTVA) . CTVA has established a higher low on its chart above the weekly cloud, which now serves as support for a bullish turnaround phase. Intermediate-term momentum is positive per the weekly MACD, and the upward slope of the 40-week and 200-day moving averages suggests that long-term momentum has shifted positive as well. Given the bullish prospects over the next several weeks for commodities like wheat, in addition to positive momentum in CTVA itself, we think Fibonacci resistance near $59 appears surmountable, which would project an intermediate-term measured move price objective of roughly $65. Long-term support for CTVA is at the weekly cloud and 40-week moving average, which converge near $53, although we would consider using the rising 50-day moving average as a trailing stop-loss for long positions. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer. Fairlead Strategies Disclaimer: This communication has been prepared by Fairlead Strategies LLC (“Fairlead Strategies”) for informational purposes only. This material is for illustration and discussion purposes and not intended to be, nor construed as, financial, legal, tax or investment advice. You should consult appropriate advisors concerning such matters. This material presents information through the date indicated, reflecting the author’s current expectations, and is subject to revision by the author, though the author is under no obligation to do so. This material may contain commentary on broad-based indices, market conditions, different types of securities, and cryptocurrencies, using the discipline of technical analysis, which evaluates the demand and supply based on market pricing. The views expressed herein are solely those of the author. This material should not be construed as a recommendation, or advice or an offer or solicitation with respect to the purchase or sale of any investment. The information is not intended to provide a basis on which you could make an investment decision on any particular security or its issuer. This document is intended for CNBC Pro subscribers only and is not for distribution to the general public. Certain information has been provided by and/or is based on third party sources and, although such information is believed to be reliable, no representation is made with respect to the accuracy, completeness, or timeliness of such information. This information may be subject to change without notice. Fairlead Strategies undertakes no obligation to maintain or update this material based on subsequent information and events or to provide you with any additional or supplemental information or any update to or correction of the information contained herein. Fairlead Strategies, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs, or claims for your reliance on this material. Nothing herein is, or shall be relied on as, a promise or representation as to future performance. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Opinions expressed in this material may differ or be contrary to opinions expressed, or actions taken, by Fairlead Strategies or its affiliates, or their respective officers, directors, or employees. In addition, any opinions and assumptions expressed herein are made as of the date of this communication and are subject to change and/or withdrawal without notice. Fairlead Strategies or its affiliates may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different from or adverse to your interests or inconsistent with the advice herein. Any investments made are made under the same terms as nonaffiliated investors and do not constitute a controlling interest. No liability is accepted by Fairlead Strategies, its officers, employees, affiliates, or partners for any losses that may arise from any use of the information contained herein. Any financial instruments mentioned herein are speculative in nature and may involve risk to principal and interest. Any prices or levels shown are either historical or purely indicative. This material does not take into account the particular investment objectives or financial circumstances, objectives or needs of any specific investor, and are not intended as recommendations of particular securities, investment products, or other financial products or strategies to particular clients. Securities, investment products, other financial products or strategies discussed herein may not be suitable for all investors. The recipient of this information must make its own independent decisions regarding any securities, investment products or other financial products mentioned herein. The material should not be provided to any person in a jurisdiction where its provision or use would be contrary to local laws, rules, or regulations. This material is not to be reproduced or redistributed absent the written consent of Fairlead Strategies.
https://image.cnbcfm.com/api/v1/image/108021850-1723990759008-gettyimages-2166026087-UK_WHEAT.jpeg?v=1727110926&w=1920&h=1080
https://www.cnbc.com/2024/09/23/katie-stockton-has-an-under-the-radar-way-to-play-the-comeback-in-wheat-and-other-soft-commodities.html
