CHICAGO: Wheat trade fell further to $7.4 in early December, the lowest since October 2021, amid strong supply from the world’s major producers and signs of lower demand.
Top exporter Russia achieved a record-high harvest in the current marketing year, extending competition into the US as poor export data divulged by the USDA without any production problems drove bids to decline in price.
In the meantime, shipments from Ukraine through Black Sea ports continued after Russia agreed to extend the UN-brokered deal that guarantees a trade corridor for vessels carrying Ukrainian grain in the Black Sea for another four months.
According to Ukrainian authorities, the country was able to export more than 11 million tonnes of grain by ships since the start of the deal on August 1st, significantly easing shortage concerns in the next marketing year.
While Earlier the CBOT March wheat trade is expected to test the support of $7.72-1/4 per bushel, a break below could open the way towards $7.54-3/4. The bounce triggered by the support seems to have ended around a resistance at $8.00-3/4.
The downtrend from $9.20-3/4 remains intact within a falling channel.The trend consists of three waves.
The current wave (c) is capable of travelling to $7.58-3/4.Resistance is at $7.92-1/4, a break above which could signal the extension of the bounce towards $8.00-3/4 to $8.09 range.
On the daily chart, the current downtrend is regarded as a part of the preceding trend from $12.73-1/4.
