From MarketWatch, March 6:
Fundstrat’s Mark Newton is betting on corn, wheat and soybeans moving higher in 2026
Grains are ready to break out and continue a commodities rally that has been driven by energy and metals, according to a technical strategist.
“Technically, agriculture’s rally looks to be kicking into gear within the commodity complex at a time when the U.S. equity rally has begun to wobble in recent weeks,” said Mark Newton, head of technical strategy at Fundstrat.
Newton said while he expects crude oil to stall out and possibly reverse in weeks to come, some commodities should still work well in the coming months. “It’s my technical view that ‘softs’ should be the next area to rise to show mean reversion to recent strength within the metals and energy complex,” he said.
He has been of the view that soybeans, corn and wheat should be turning higher due to the prevailing six-year cycle in grains.
Newton has been tracking the Bloomberg Commodity Index, which has a 34% energy weighting and 27% in agriculture, commenting that most popular indexes and ETFs are heavily weighted to energy. The Bloomberg index has just risen above last month’s peaks to the highest levels since 2022, and he believes it could test former all-time highs this year.
The Invesco DB Agriculture Fund DBA +1.11% tracks an index of 10 agricultural commodity futures contracts, he said. The DBA is up an annualized 13% over three years, 4% over 10 years, and more than 3% over a year, according to FactSet.
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We don't have any interest in the funds or the Exchange Traded Notes, preferring the futures, but DBA is a handy overview of the action.
