Wheat Futures Rally on Black Sea Escalation as Market Tests Key Resistance

Chicago wheat futures have surged in July, touching a two year peak near $7.06 per bushel before settling into the $6.60 to $6.80 area, as an escalating Russia Ukraine conflict disrupts Black Sea shipping and a historically weak US winter wheat crop tightens the supply outlook. Technically, the market has held above its yearly VWAP since January and has been carving progressively higher highs since March, most recently pushing into the 720 resistance area before rotating back to the 660 zone where buyers appear to be defending. With 660 now the pivotal level, the coming weeks should reveal whether the market can extend toward 760 or slip back toward the 580 base that has anchored this year's range.Field of wheat under a blue cloudy sky by Robin Via Pixabay