CBOT wheat neutral in $3.96-1/2 to $4.02-1/2 range

SINGAPORE: CBOT December wheat looks neutral in a range of $3.96-1/2 to $4.02-1/2 per bushel, and an escape could suggest a direction.

The range is formed by the 76.4 percent and the 61.8 percent Fibonacci retracements of the uptrend from the Aug. 31 low of $3.86-3/4 to the Oct. 14 high of $4.28-1/4.

After finding the support at $3.96-1/2, wheat approached $4.02-1/2. However, there is no guarantee that it could break $4.02-1/2. A break could lead to a gain to $4.07-1/2.

Most likely, the contract may consolidate in the range for one day before seeking its direction.