Cheaper Wheat is good for Kellogg’s

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

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.

and written slightly before this,

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

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