SINGAPORE: CBOT wheat may extend its gains to $9.01 per bushel, as it has briefly pierced above a resistance at $8.86.
The big surge on Monday was news-driven.
Market is yet to fully digest the Russia’s suspension of the Black Sea deal.
A further gain is still likely. However, the resistance at $9.01 will be a major obstacle, as the current rise is categorized as a bounce against the downtrend from $9.49-3/4.
The trend may resume upon the completion of the bounce around $9.01.
A fall below $8.67 may be extended to $8.52-1/2. On the daily chart, wheat climbed above a resistance.
Pakistan said to buy 385,000 tonnes wheat in tender
Whether this resistance has been broken will largely depend on the closing price on Monday.
A close far above $8.70-1/4 could confirm a break and a target of $9.49 while a close below $8.70-1/4 will prove the break to be false, a bearish target of $8.21-3/4 will be established accordingly.
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