By Bryan McCormick
In part the recent price gains have been explained by the drop in the dollar. Since the end of July, the greenback has lost nearly 7 percent against other currencies.
The summer of weather disasters in various grain producing nations, as well as ongoing crop estimate reductions into the fall, have been the fundamental drivers of increasing prices. China demand has also helped fuel the rise.
The pattern we are looking at today is a bullish "flag," shown in yellow below, which became active when DBA broke above $28.50. The pattern would become inactive on a move below that level.
(Click to enlarge)
Disclosure: No position