Wheat prices have climbed past the summer 2010 scare and are approaching 2008 levels. So far wheat has been lagging record high prices in sugar and other foods.
CMC Markets’s Michael Hewson suggests a big more higher:
Despite the recent sharp rise in prices the wheat price is still some way short of the 2008 highs of $13.495 but it is nearing a key technical level, a break of which could well trigger further sharp rises.
It would take a move below $7.40 trend line support from the June lows at $4.255 to undermine the current upward momentum.
The $8.875 level is 50% Fibonacci retracement level of the down move from the 2008 highs to the lows we saw last year at $4.255.