SINGAPORE: CBOT May wheat may retest a resistance at $6.88-1/2 per bushel, a break above which could lead to a gain into $6.93-1/2 to $6.99-3/4 range.
The strong bounce from the April 6 low of $6.71-1/4 confirmed a reversal of the short downtrend from $7.10.
This bounce is expected to be as strong as the one from the March 31 low of $6.81.
Support is at $6.80-1/2, a break below which could be followed by a drop into $6.72-3/4 to $6.77 range. On the daily chart, wheat seems to have stabilized around a support of $6.75-1/2 again.
Russian wheat cheapest on C&F basis in Egypt tender
The stabilization indicates a further consolidation in the range of $6.75-1/2 to $7.31-1/4.
The longer the contract hovers above $6.75-1/2, the more likely it rises towards $7.31-1/4.
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