Wheat, although trading freely throughout the day, also locked limit down shortly before the close of the session, almost certainly in a sympathy move with other weak commodity prices. Sugar, cotton, copper, coffee, nickel, crude oil, cocoa, and even gold (to a lesser degree) are also all down dramatically today. Today was a commodity price rout!However, I am hearing traders say that they will buy the dips in commodities. After such a dramatic rise in commodity prices over the past two months, I anticipate more of a consolidation than a bear market. Historically, prices following a strong bull market tend to consolidate in the near term rather than reverse. Following a consolidation period, either a bull or bear market can occur, although I believe a new bull (following an earlier bull) has a higher statistical frequency, from my experience.
