SINGAPORE: CBOT March wheat is expected to revisit its Dec. 6 low of $7.23-1/2 per bushel, as a downtrend from $8.20-1/4 has resumed.

The trend consists of five waves.

The bounce from $7.23-1/2 has been driven by a wave 4, which is expected to be reversed by the current wave 5.

A falling trendline points to a target of $6.97. Resistance is at $7.54-3/4, a break above which could lead to a gain to $7.72-1/4.

On the daily chart, wheat has completed a pullback towards the Aug. 18 low of $7.60-1/4 and been back on its downtrend.

CBOT wheat falls on global supply pressure

Driven by a wave C, the trend is expected to extend to $6.44-3/4, the 61.8% projection level of a presumed wave C from $9.62.

A break above $7.60-1/4 may lead to a gain to $8.00-3/4, as suggested by a falling channel.