WHEAT

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GENERAL OVERVIEW OF WHEAT MARKET

ISSUE DATE: MAY 09, 2006

Wheat has reached the attraction zone — the IC4 cycle end, and we expect it to move to the next, the IC3 cycle end. In getting to that target wheat may first fall to the lower side of IC3 or it may continue up D1 to the top side of IC3. If wheat continues up D1, it may not stop for long at upper IC3 and break up through and go the extra distance to the IC2/M1 junction — another attraction zone.

M1 will have a strong impact on wheat when price comes in contact with it, forcing price down, maybe even to the IC5/M1 junction. On the other hand, a permanent break across M1 should lead to a return to continuing upward trends.