May K.C. wheat climbed 21 1/4 cents Thursday to its highest close in seven months as winter wheat contracts continue to respond to concerns of dry weather and wildfire risk in the southwestern U.S. Plains.
July wheat traded past resistance at 492.5 surging to 531 on Thursday. As mentioned previously, when wheat bottoms in December or January, the average price gain is 18.1 percent which projected a target at 516. One pattern points to climbing to 543. The cycles indicate that a top could occur by the end of the week or March 6th. Be aware the market is at its most overbought level since last July. Looking at March, wheat futures are down 53 percent of the time. Next week, the odds are even as to whether they will be higher or lower.