December wheat futures at the Chicago Board of Trade on Thursday hit a fresh 10-month low of $7.14 a bushel. Since the Aug. 21 high of $9.57, December wheat has dropped by around $2.30 a bushel. Bears have solid downside near-term technical momentum and their next objective is to produce a close below major psychological support at $7.00 a bushel.
Wheat prices have been trending lower for six months, since the contract and all-time high of $12.84 14 posted in mid-March.
For the wheat bulls to begin to regain some upside near-term technical momentum they would have to push and close December futures prices above strong psychological resistance at $8.00 a bushel, which would also fill on the upside a downside price gap on the daily bar chart that was created on Sept. 2.
A close below psychological support at $7.00 would produce more serious technical damage and would also open the door to a quick move to chart support at the $6.50 area, basis December Chicago soft red winter wheat futures.
Wheat traders will continue to look to the key "outside markets" for direction--the value of the U.S. dollar and crude oil prices. Both of those outside markets are in a bearish posture Thursday--lower crude oil prices and a stronger U.S. dollar.