SINGAPORE: CBOT wheat is expected to break a resistance at $8.01-3/4 per bushel and rise into $8.24 to $8.42-3/4 range.

The contract has climbed above the upper trendline of a wedge.

It has a better chance of rising into $8.24 to $8.42-3/4 range.

A fall to $7.86 could signal an extension of the wedge. The downtrend may develop towards the range of $7.36-1/2 to $7.65-1/2.

On the daily chart, the contract seems to have broken a resistance at $7.92.

The break looks reliable, in conjunction with the bullish divergence on RSI.

US disapproval of China’s grain stockpiling full of irony

The break opened the way towards $8.86-1/2.

A more realistic target is $8.43-1/2, the July 20 high.