SINGAPORE: CBOT wheat may edge up to a resistance at $8.06-1/2 per bushel, before turning around and retesting a support at $7.90-1/4. The drop on Thursday looks too sharp to sustain.
The support at $7.90-1/4 seems to have triggered a pullback towards a rising trendline.
The pullback is expected to be weak, limited to $8.06-1/2. A break below $7.90-1/4 could confirm the extension of the downtrend towards $7.70 to $7.80 range.
Private sector allowed to import wheat
On the daily chart, wheat observes two sets of retracements, respectively on downtrends from $9.54 and from $12.82.
The big black candle on Thursday suggests a further slide of the price into $7.74 to $7.81 range.
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