On the back of recent weakness, we are watching for a conviction break below 3.13 in the July Wheat Contract.
Amid Poor export numbers and surplus stocks; Corn, Soybeans and Wheat have begun to consolidate with a downward bias. In December Wheat, (pictured above), support and resistance are 505 and 527 respectively. Unless we see positive export news, we expect to see Corn, Soybeans and Wheat to trend lower.
Despite trading higher last week, Soybeans continue to be influenced by the pall of tariffs. Even with this over-hang however, due to the degree of the recent sell-off, beans remain at over-sold levels.
We are currently Flat this market but will re-enter if the current area of congestion (8.12 – 8.55 ) can be broken-through.