Crop scouts on the second day of an annual three-day tour of Kansas projected an average yield for hard red winter wheat in the southwestern portion of the state at 56.7 bushels per acre, up from 47.6 bushels in 2019.
On the daily chart, the contract reapproached a strong resistance zone of 4,486 ringgit to 4,576 ringgit, formed by the 2008 high and a 161.8% projection level.
This fall looks like a pullback towards the March 15 high of 4,192 ringgit, around which, the contract is stabilizing, as suggested by the doji forming on Monday.
The gap appeared while a wave 5 was developing. It looks like an exhaustion gap, signalling a completion of the five-wave cycle from the April 30 low of 3,865 ringgit.