Grains may enjoy elevated volatility at 5:00 pm BST today as the WASDE report will be released. Report is expected to show lower ending stocks for cotton, soybean and corn. Meanwhile, ending stocks for wheat are expected to come in higher than last reading.
Wheat has been trading lower throughout March but the commodity managed to halt declines by the end of the month at 78.6% retracement of the upward impulse launched at the beginning of December 2020 (595 area). An upward move followed and wheat price is now trading near the resistance zone marked with 50% retracement at 630. Breaking above this hurdle could put the price on track to retest recent highs in the 685 area. On the other hand, failure to break above it could trigger a pullback towards the aforementioned 595 area, where 200-session moving average (purple line) and 78.6% retracement can be found.
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Source: xStation5
