During Friday’s trading session wheat futures for delivery in May traded within the range 658.9-676.3 and closed at 670.3.
At 13:36 GMT today wheat futures for settlement in May traded at 675.1 US cents per bushel, adding 0.76% for the day. The contract breached the first key resistance of 678.0 US cents per bushel, hitting a daily high at 679.1 US cents per bushel at 05:45 GMT.
Fundamental view
A government report due later today may show crop conditions deteriorated, as weather forecasts in the US continue to call for below-normal amounts of rainfall in most of the producing areas.
Last week, the US Department of Agriculture reported that 25% of wheat crops in Kansas, the top producer of winter varieties, was in poor or very poor condition as of the period ended March 30, up from 21% reported in the previous week. At the same time, almost 60% of crops in Texas and 45% in Oklahoma were also rated to be in poor or very poor condition. The government agency is scheduled to release its weekly report on national crop ratings at 20:00 GMT today.
Technical view
According to Binary Tribune’s daily analysis, in case wheat price manages to breach the first resistance level at 678.0 US cents per bushel, it will probably continue up to test 685.8 US cents per bushel. In case the second key resistance is broken, the grain will probably attempt to advance to 695.4 US cents a bushel.
If wheat price manages to breach the first key support at 660.7 US cents, it will probably continue to slide and test 651.1 US cents per bushel. With this second key support broken, the movement to the downside will probably continue to 643.3 a bushel.
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