SINGAPORE:As the rally from the March 10 low of $6.61 has come to an end, CBOT May wheat futures may fall into a range of $6.61-3/4 to $6.70-1/4 per bushel.
A resumption of the downtrend from $7.84-1/2, which continues to closely follow a set of projection levels, was confirmed by the severe fall from the March 17 high of $7.12-1/2.
The bounce is made up of three small waves. The wave’s bottom at $6.77-1/2 did not stop the fall.
The drop may eventually reach $6.61-3/4. A break above the $6.80-1/2 to $6.84-1/4 resistance zone could propel prices higher into the $6.89-1/2 to $6.93-3/4 range.
On the daily chart, the contract is retesting the support of $6.75-1/2, a break below which could open the way toward $6.06-3/4.
CBOT wheat futures may fall into a range of $6.80-1/2 to $6.89-1/2. If the contract falls below the low of $6.61 on March 10, the break will be confirmed.
The possibility that the support will cause the second bounce is not entirely clear.
It is anticipates that the support will be more robust than the one at $7.31-1/4. The second bounce will probably occur around $6.61 per bushel.
While By the end of the 2022/23 season, which began in July, wheat exports from the European Union had reached 22.13 million tonnes, up from 20.52 million the previous week in 2021/22, according to data released on Tuesday by the European Commission.
However, So far in 2022/23, the EU exported 4.33 million tonnes of barley, up from 6.18 million a year earlier. Meanwhile, the EU imported 19.73 million tonnes of maize, up from 11.90 million a year earlier.