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After rising to heights rarely before seen, the price of wheat (and other grains) has fallen drastically over the past few weeks.  What is going on?  For one thing, the fact that the ethanol craze has been a boondoggle from the beginning is becoming more evident every day.  We now have a surfeit of ethanol - too much of it to be absorbed in the market.  Consumers are getting wise to the fact that it contains less energy per gallon than gasoline, whereby the mileage per tank has declined - and they are getting less for their money.

From this current price low, where will Wheat prices go from here?  If we look at the Japanese Candlestick price formations of Wheat prices, especially in combination with other Indicators, we can readily see that prices are indeed at, or very close to, a low, and that the chance of a turnaround is very high.

Informed investors in the commodity markets know how to play these ongoing rises and falls in prices, not only in Wheat but also in the other commodities as well.  Prices do move in waves; and the trick is not to fear declines, but to expect them and the use them to advantage in both directions.