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SINGAPORE: CBOT May wheat may break a support at $10.57-1/2 and test the next support at $10.33-3/4 per bushel, as its uptrend from the April 1 low of $9.82-1/2 has reversed.
The reversal has been confirmed by a break below a rising trendline.
The sideways move above $10.57-1/2 is classified as a pullback towards the trendline.
A break above $10.81 could lead to a gain into the range of $11.10 to $11.28.
Argentina’s wheat crop may dip
On the daily chart, the current move observes a set of retracements on the rise from $7.38-3/4 to $13.63-1/2.
The support at $10.51 looks vulnerable, as it failed to trigger any decent bounce.
A drop to $10.50 may confirm a break below this support and a target of $9.77-1/4.