CBOT wheat hovered near even overnight after a 1.5% drop Thursday, pressured by beneficial rains expected across the US Southern Plains.
China is scooping up supplies of US white wheat to feed livestock, pushing export forecasts for the grain usually used to make sponge cakes and noodles to a 27-year-high.
Signals on the daily chart are a bit bearish as well, as the contract is zigzagging up in a rising channel, which suggests a further drop into $13.76-3/4 to $13.95 range.
The US Department of Agriculture reported export sales of US old-crop wheat at 167,800 tonnes, a marketing year low that fell below a range of trade expectations, while new-crop sales totaled 14,800 tonnes.
Corn futures slid to session lows after the USDA's weekly export sales data fell below trade expectations.
On the daily chart, there is a similar resistance at $13.97. The sideways move over the past two days could be due to an accumulation of the bullish momentum.
This break is regarded as a convincing signal that the downtrend will be completely reversed. A drop to $13.78 could suggest the break was false, and the target has to be temporarily aborted.
A break below $6.66-1/2, now a support, may cause a fall to $6.58-1/2. On the daily chart, the correction from $6.93 ended around $6.29, the 61.8% retracement.
Corn also benefited from export sales, as the USDA reported private sales of 336,500 tonnes of the US corn to unknown destinations for shipment in the 2020/21 season.
8 The contract is riding on a wave 3 that is travelling towards the range of $12.69-1/4 to $12.77-3/4, formed by its 338.2% and 361.8% projection levels.