CBOT wheat may fall to $6.63

SINGAPORE: CBOT September wheat may break a support at $6.74-1/4 per bushel and fall to $6.63-3/4.

The current fall looks like a continuation of the downtrend from the May 7 high of $7.67-1/2, as the rise from the July 9 low of $6.09-1/2 adopted a three-wave mode.

The wave b ended at $6.30-1/2, which works as a target. Resistance is at $6.84-1/2, a break above which could lead to a gain to $6.97-1/4. On the daily chart, the contract is falling towards a support at $6.66-1/2, as it failed to break a resistance at $7.05-1/4. The current fall could be mirroring the rise from the May 26 low of $6.42-3/4. Based on this assumption, wheat could fall towards $6.66-1/2 as well.

Charts are not available in reports received in email box through “Alert”. To get charts, use the news code of to retrieve the original reports. Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.