July KC Wheat Chart

Wheat prices exploded yesterday with limit gains seen at times during the day in Chicago and Kansas City.

Today we did try to fill the gap early when prices were sharply lower, but prices did turn around and closed higher again with KC wheat posting a new contract high at 13.79.

There is no sign of a topping action following todays strong lose but with prices exploding to new contract highs and technical indicators extremely over bought this is the place to exercise some caution.