December Chicago soft red winter wheat futures at the Chicago Board of Trade on Tuesday hit a fresh seven-week high of $5.53 1/4 a bushel. Prices are in a four-week-old uptrend from the early-June contract low of $4.72 3/4. The wheat market bulls have recently gained fresh upside near-term technical momentum to firmly suggest that a market bottom is in place.
The next near-term technical objective for the wheat market bulls is to push and close December futures prices above strong chart resistance at the May high of $5.58 1/4 a bushel. A close above that key technical level would then suggest prices can continue to trend higher in the coming weeks. Wheat market bulls would begin to fade again if December futures prices closed below solid chart support at the April low of $5.07. Near-term technical resistance is located at $5.50 and then at Tuesday’s high of $5.53 1/4. Support is seen at $5.33 1/2 and then at Tuesday’s low of $5.25 3/4. Stay tuned! Jim Wyckoff