Chicago Wheat Futures Rise, It May Continue Upward Bias

SINGAPORE:

Wheat futures in the United States rose to $7 per bushel, rebounding from their March 9 low of $6.65, which was a 20-month low.

While Moscow tried to shorten the deal that guarantees a safe trade corridor in the Black Sea from 120 days to 60 days, but the Ukrainian authorities refused.

Chicago Board of Trade  wheat may retest the $7.03-1/4 per bushel resistance level a break above this level could result in a move into the $7.12 to $7.16-3/4 zone.

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However, The strong rebound from the March 10 low of $6.61 and the five-wave structure of the trend support a reversal of the downtrend that began with the Feb. 14 high of $8.07-1/2.

It is anticipat that the bounce will continue to the wave 4 peak at $7.21-3/4. based on a projection analysis, the goal is $7.12, or $7.16-3/4.

Wheat’s swift recovery from the shallow correction that brought it to the low of $6.92-3/4 on Wednesday suggests that the move toward the goal zone will continue.

Also a break below $6.93-3/4 could mean that the bounce is over. Wheat has stabilized around a crucial support level of $6.75 on the daily chart and is currently moving in the direction of $7.31-1/4. The exact path to this goal is still unknown, despite the fact that it is obvious and certain.

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The weaker dollar causes wheat to rise for the second session; Focus on the Black Sea Deal The difficult question is whether wheat ascends directly to this level or in a zigzag fashion. A break underneath $6.75-1/2 could affirm the continuation of the downtrend towards $6.06-3/4.

Fears arose as a result of the news that Ukraine, a major exporter, may have restricted access to international customers, which would significantly limit global supply.

Meanwhile, The country’s winter wheat harvest was stronger than expected, so it needs to keep shipping wheat to make room for the new crop. The rebound in prices  constrained elsewhere by ample supply.

According to President Putin’s address to the country’s Federal Assembly, Russia, a leading exporter, is anticipat to sell up to 60 million tonnes of wheat on foreign markets in the current marketing year.

In 2022, Russia harvested a record-breaking 153.8 million tonnes of wheat, forcing farmers to sell empty silos to international customers.