SINGAPORE: CBOT March wheat may test a resistance at $7.52-1/4 per bushel, a break above which could open the way towards $7.61-1/4.
The contract managed to stabilize around a support at $7.41-1/4, which is near the bottom of a wave b at $7.38-3/4. Together, these supports are expected to stop the fall for a few days.
It is not very clear how strong the current bounce would be. The bounce following a steep fall generally tends to be either very weak or strong, but quick.
A failure to break $7.52-1/4 may be followed by a drop towards $7.41-1/4.
On the daily chart, a doji appeared on Thursday around a support of $7.37-1/4. The drop is temporarily over. The market may slowly climb towards $7.70.
NY cocoa may drop into $2,583-$2,598 range