Wheat May 2019


Wheat: Long-term (3-year) channel support this week at 430.25 can absorb selling through summer trade, above which 505.25 remains a realistic 2-3 month upside objective - possibly attainable by the end of April under continued heightened volatility. At 505.25 the May contract can top out into expiration, and perhaps the broader Wheat futures into summer trade, while a weekly settlement above 505.25 would indicate a good 2019 low, 605.50 then considered a realistic 3-5 month upside objective. Downside, a weekly settlement Friday below 430.25, and by that I mean by greater than a 1% violation threshold by closing the week below 426.00, would maintain a continued bearish dynamic into summer trade, the 386.75, 2018 low then expected again within 3-5 weeks, the next 5-8 months allowing a continued collapse down to the next long-term support threshold at 257.25.