Foods and Fibers: Winter Wheat ratings gave promise to the bulls and allowed wheat to move to the top of the leader board. The much needed fundamental news gave the bulls the push they needed to break above the key resistance of $7.57, the October 13, 2010 high. The next target for March futures will be $7.82 and then $8.31-4. Looking at wheat versus the dollar, its 50 day correlation study (NYSE:DCS) is currently at 23.46%, and the 100 DCS is -71.57%. The short-term fundamentals have supported wheat’s price as the greenback fell, thus prompting the 50 DCS to move to a non-correlated status. The question to ask and watch for is; will the fundamentals remain strong enough to battle off any dollar based rallies?
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