Grains: Looking For Consolidation

We expect the recent rise in front-month CBOT wheat prices to become constrained in January. Since reaching a nadir in mid-November at around USc570/bushel, prices have showed steady gains and have finally brushed up against resistance at around USc660/bushel. We expect to see some consolidation in this area, largely because prices are already almost overbought on a short-term basis and there is significant horizontal and trend-line resistance in the area. Furthermore, a strong planting season in the northern hemisphere and another record output expected in Australia should help to restrain prices in the short

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