Feb. 10 wheat trade is another reminder that the wheat market remains on edge, with prices shooting higher as Russian missiles passed over the airspace of Moldova and Russia increased its attacks on Ukraine.
March hard red winter wheat settled 30 cents higher at $9.09/bushel, the contract's largest one-day move since Oct. 31. Today's move follows two consecutive days where trade met resistance near the $9/bushel psychological resistance level. Today's close was also above the 38.2% retracement of the move from the October high to January low at $8.91/bu, while for the second time in three sessions. Today's rally also marks the first close above the contract's 100-day moving average seen since Nov. 23, or over two months. This move follows the overnight trade that saw the March contract bounce from Thursday's low of $8.77/bu.
The next level of resistance is seen at $9.18/bu, which is the 50% retracement of the move from the contract's October high to January low, while today's high came within 4 3/4 cents from this level. A breach of this resistance could result in a further move to the 61.8% retracement at $9.45/bu.
The first study shows the March/May contract spread, which closed at 12 3/4 cents, the strongest inverse seen since June 1, 2022.
Cliff Jamieson can be reached at email@example.com
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