SINGAPORE: CBOT wheat may retest a support at $6.48-1/4 per bushel, a break below which could cause a fall to the May 26 low of $6.39-1/2.

The contract remains on a steady downtrend within a falling channel. A small double-top forming around $7.03-1/2 suggests a target of $6.39-1/2.

A break above $6.69-1/2 could be the very early signal that the short downtrend from the June 7 high of $7.04 has reversed. Confirmation of the reversal will be when wheat climbs above $6.79.

On the daily chart, wheat pierced deeper below a support zone of $6.59-3/4 to $6.65. Chances are it may fall towards the next support zone of $6.32-3/4 to $6.34.

The chance of a further fall will be greatly reduced, if wheat could close above $6.65 on Wednesday.

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