Cheaper Wheat is good for Kellogg’s

On November 25, 2021, when Wheat was trading at $8.50, I suggested Selling.

https://robzdravevski.com/2021/11/25/kneading-the-dough/

Soon after, it traded down to the range mentioned in that post.

Now it’s $7.54.

Should it trade below $7.51, then I think it’s on its way to its next level lower, towards the $7.21 region.

If the medium term downtrend strengthens, I’ll look for the price of Wheat to visit to $6.78.

That would represent a 78.6% retracement of the advance which commenced in early September and it coincides with a 61.8% pullback of the larger rally which began in July 2021.

The notes (see links) below were written in July 2021, predicting the bounce in Wheat.

https://robzdravevski.com/2021/07/16/wheat-is-bouncing/

https://robzdravevski.com/2021/07/12/fat-part-of-wheats-short-has-been-seen/

and written slightly before this,

Quick Look at Wheat

And the winner is and will be…..Kellogg’s share price.

‘As a grain-based food company, the success of Kellogg Company is dependent on having timely access to high quality, low cost ingredients,….’ – source: Kellogg Company 2020 annual report.

December 6, 2021

by Rob Zdravevski

rob@karriasset.com.au