There is further turmoil in the eastern half of europe as the russian military enters Ukraine.
The mounting unrest is already showing its effect in the commodity market, since the Ukraine is one of the worlds largest producer of Wheat. Unfortunately, Corn is being dragged with it, climbing to its highest point since september, last year. While we can not speculate on the outcome, we can post some technical analysis regarding these two commodities.
Wheat
Daily chart: Wheat prices have been inching upwards for the last two weeks after a previous big drop until this morning, which could be attributed to the fact that the Ukraine is one of the largest producer of this crop.
After the breakout from $619 the first stronger level is awaiting at $655, followed by $718. Wheat could reach this high if the tension in the country remains, and if there will be no resolution to the brewing conflict within the next couple of days.
The gap from this morning and the $587 level should act as supports from this point on.
Corn
Daily chart: A similar reaction can be observed in the chart of corn, which has left the previous price of $455 behind.
Although the gap was not nearly as impressive as in the case of wheat, it could still give the commodity enough momentum to reach the previous zone between $510 and $520. The chart is telling us more as well, since the prelude to this move was a long turn in the form of a shallow valley.
The closest supports to bar corn from a possible selloff are at $440-$450.