Corn and Wheat Are Going Against the Grain

The market is doing what it is supposed to do -- which is pull back from the overbought condition

The only real change in any indicator from Wednesday was that the Investors Intelligence bulls jumped seven points and now stand at 35.2%

wheat, where prices have fallen nearly 20% in the last few weeks, yet we hear about how wheat prices are surging.

Corn broke as well. Only corn broke an uptrend line dating back to January.

There is a lot of support as it comes to that $7 area. where is the chatter about corn prices coming down?

we have not yet seen a "double tap" up there in the 3% zone. But the Daily Sentiment Index (DSI) for bonds is back to 13 again.

Should yields back up much more, that DSI will fall to single digits, which would make bonds a buy again. And we'd get the double tap, wouldn't we?

That's just some food for thought as everyone is chatting inflation yet at least when it comes to grain prices, they are no longer surging.