Leadership Inside the Grains

Last week, we made the case that if energy is going to work, the grains won’t be far behind. 

Historically, these two commodity complexes have danced together. It’s very rare to see a durable bull market in energy that doesn’t eventually bleed into agriculture. 

Higher energy prices feed directly into fertilizer, transportation, processing, and, ultimately, food costs. These markets are intertwined.

So this week, we’re building on that thesis by zeroing in on where we’re seeing the most compelling strength inside the grains complex. That is Soybeans.

Let's start with our Gold Rush Soybean Index, an equal-weight basket of Soybeans, Soybean Meal, and Soybean Oil. The technical picture is about as constructive as it gets.

Our Gold Rush Soybean Index is ripping to new multi-year highs and resolving higher from a textbook multi-year bearish-to-bullish reversal pattern. 

We’re not talking about a short-term pop inside a bigger downtrend. This is a structural shift in trend.

As long as this breakout holds, the path of least resistance is higher for the foreseeable future.

But leadership isn’t just about going up in absolute terms. It’s about outperforming your peers.