The wheat market rally finally showed signs of topping out last week, with futures posting bearish weekly reversals and challenging support lines on Friday.
Technicals are only one test the market faces this week. After taking a beating over the last two months, the dollar showed signs of at least a short-term bottom to end the week. Wheat was one of the big beneficiaries of the greenback's downfall, so stability in the currency market could cause more profit taking.
Perhaps the biggest test in the week ahead will be USDA's updated production estimates. Crop ratings suggest slightly lower winter wheat totals, and the agency may trim its spring wheat statistical guess too due to planting delays.
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