SINGAPORE: CBOT March wheat may retest a support at $7.52-1/2 per bushel, a break below which could open the way towards $7.42 to $7.45-1/2 range.
A wave C from $7.42 may have completed, as suggested by the deep drop triggered by its 76.4% projection level of $7.76-3/4. Even though the wave A clearly adopted a five-wave mode, the wave C looks totally corrective in nature.
It is very possible that the wave C developed much shorter than the wave A. Resistance is at $7.65-3/4, a break above which could lead to a gain into $7.70 to $7.76-3/4 range.
CBOT soybeans neutral in $15.27-1/4 to $15.39-1/4 range
Trending signals have turned bullish on the daily chart, as a five-wave cycle from $9.62 has completed. Wheat at least could climb to $8.02-1/2, near the peak of the wave d.
The difficult part is to predicate the exact course towards $8.02-1/2. Simply based on the small candlesticks from Jan. 27, the contract is likely to retrace towards $7.29-1/4 again to form a solid bottom for the subsequent rise.
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