In early-April, the LIFFE Wheat contract encountered firm support at 178; at the 200-day moving average. However, the recovery from there was unable to clear resistance near 190, and has since dribbled back down to challenge support at last month's low.
Overall, the pattern since the pinnacle was reached in late 2012 is extremely top heavy. We watch to sell a break under 178, which would have the 170 region to aim for.
We continue to hold a long position in the US-traded Kansas City Wheat contract. Disappointingly, the price has reacted from 800, dropping back into the prior trading band. Support in the lower half of that range, which stretches down to 711.25, must hold to keep base hopes alive.