Grains are trading higher at the beginning of a new week. Russia withdrew from a UN-brokered deal on Ukrainian grain exports, saying that it can no longer ensure safety of civilian vessels in the Black Sea following a weekend drone strike on its navy base in Sevastopol, Crimea. The United Nations has already expressed its concern over the development and said that it will talk with Russia in an attempt to revive the deal.
WHEAT launched a new week's trade with an over-5% bullish price gap. While grain price holds onto these gains, it has pulled back from a daily high reached during the Asian session. CORN is also trading higher but in this case gain is much smaller - around 2.5% at press time. Taking a look at WHEAT chart at D1 interval, we can see that price jumped above a resistance zone marked with 23.6% retracement of the downward move launched after early-March highs were reached. A test of this zone was made shortly after markets reopened after the weekend but bulls managed to defend it. The next major resistance zone to watch can be found in the 925.00 area and is marked with previous local highs as well as 200-session moving average.
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Source: xStation5
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