SINGAPORE: CBOT July wheat may test a support at $6.35 per bushel, a break below which could open the way towards the May 11 low of $6.25-1/2. A wave c from this low has completed around a resistance at $6.65-3/4, as suggested by the deep fall from the May 16 high of $6.64-1/4.
The completion also marks the ending of a bounce from $6.03-3/4.
Wheat is expected to first drop to $6.25-1/2 and then head towards $6.03-3/4.
Resistance is at $6.50-1/4, a break above which may lead to a gain into the $6.58 to $6.65-3/4 range.
Wheat eases after surge, corn and soy also lower
On the daily chart, the contract failed to break a resistance at $6.70 and a falling trendline.
The failure is likely to be followed by a continuation of the downtrend from $8.10 towards $5.83-1/2.
A different calculation reveals a similar target of $5.61-3/4.
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