It appears that various agricultural commodities are likely to outperform equities in the foreseeable future, at least during the first half of 2017 & quite likely well beyond. One of my favorite trade setups in the ag commodities sector right now is wheat, which can be traded using futures or the etf, WEAT. WEAT looks poised to rally to any & most likely all of these price targets following a breakout above this bullish falling wedge pattern. Adding to the longer-term bullish case is the fact that wheat has been basing just below the lower-end of its decade+ trading range with positive (bullish) divergences building.

There are also quite a few other agricultural commodities that look poised to rally in 2017, some of which I’ve included in the charts below but for those considering exposure to agricultural commodities, DBA (Powershares DB Agricultural Fund ETF) is a simply & efficient way to gain exposure to the agricultural commodities sector as it is comprised of the following: Live Cattle (14.24%), Soybeans (12.70%), Corn (12.35%), Wheat (12.12%), Sugar (11.92%), Lean Hogs (10.34%), Cocoa (9.79%), Feeder Cattle (4.58%) & Cotton (2.89%). DBA looks poised to rally to at least the 21.75 area on a breakout above this bullish falling wedge pattern.