CNS Canada — Nearby technical signals for MGEX spring wheat futures in Minneapolis have turned bullish, as prices rallied during the first part of June.
However, the market remains rangebound from a longer-term perspective.
The July wheat contact in Minneapolis has climbed by 50 cents per bushel since June 1, and settled Tuesday at US$5.8275. That’s the highest close for the front-month contract in two months.
July spring wheat is now well above most major moving averages, sitting 10 cents above the 100-day moving averages, and as much as 20 cents above the 20- and 50-day averages.
Other technical indicators are not yet pointing to an overbought situation, which means more upside is possible.
However, the contract appears to have run into some resistance at US$5.88 per bushel, as it has hit that point twice in the past three sessions but then backed away. If values do break above that level, the next psychological target to the upside comes in at the US$6 mark.
On the other side, if the market stalls out at current levels, major support can be found in the US$5.20-$5.30 per bushel area.