SINGAPORE: CBOT May wheat may retest a support at $9.71-1/4 per bushel, a break below which could cause a fall to $9.24-1/2.
The contract is riding on a wave C, which may either end around $9.71-1/4 or extend to $8.49.
The bounce triggered by the support at $9.71-1/4 seems to have adopted a corrective wave mode, which indicates an extension of the wave C towards $8.49.
A rise to $10.20 may be extended to $10.46-3/4.
Wheat production target missed
On the daily chart, the drop is controlled by a set of retracements on the uptrend from $8.59-3/4.
The bounce triggered by the support at $9.78-1/2 only managed to pierce above $10.52.
With wheat approaching $9.78-1/2 again, it is likely to break this level and fall more.