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* Wheat (CBOT)- Currently $500.50
* Over the past 7 trading days, we have seen wheat prices plummet $78.5 peak to trough. Remarkably, there is no indication of this being from longs liquidating positions. This drop can be credited to short hedging by processors and producers, along with new short sales by money managers. Short positions for managed money expanded rapidly by 11.09%.
* Long term prospects for wheat continue to look bleak with the possibility of dropping as low as $375 over the next year. Certainly the amount of institutional hedging we have seen over the past several sessions would hint at lower prices going forward as well.
* There are two major support levels that prices will have to break before going below the October, 09 low of $439.25.
* The first area where support for prices could appear occurs between $493-$496.55
* Second support level is $471 - $473.25
* If either of these price regions hold as support, the long term upside target is $632.75 – $635.5
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