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Wyckoff's Wednesday Closing Grains: July Corn Closes Lower

Wyckoff's Wednesday Closing Grains: July Corn Closes Lower

01 May 2013
Jim Wyckoff Commentary -  TheCropSite

ANALYSIS - July corn futures closed down 3 1/2 cents at $6.46 3/4 Wednesday. A weaker raw commodity sector, in general, Wednesday, led by sharp losses in crude oil, limited buying interest in corn, writes Jim Wyckoff for TheCropSite.

A wetter and colder weather outlook for later this week and into next week is still bullish for corn. There are likely to be significant corn-planting delays in the U.S. Corn Belt. The corn market bulls and bears are still on a level near-term technical playing field. However, the bulls have to show fresh power soon to keep that status.

Corn bulls' next upside price objective is to push and close prices above solid technical resistance at this week’s high of $6.69. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at this week’s low of $6.25. First resistance for July corn is seen at Wednesday’s high of $6.52 3/4 and then at $6.57 1/4. First support is seen at Wednesday’s low of $6.39 1/2 and then at $6.33. Wyckoff's Market Rating: 5.0

July soybeans closed down 26 cents at $13.73 a bushel Wednesday. Prices closed nearer the session low. A weaker raw commodity sector, in general, Wednesday, led by sharp losses in crude oil, pressured soybeans. The soybean market bears have quickly regained the near-term technical advantage.

The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $14.00 a bushel. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $13.50. First resistance is seen at $13.85 and then at $13.95. First support is seen at Wednesday’s low of $13.65 1/2 and then at $13.55. Wyckoff's Market Rating: 4.0.

July soybean meal closed down $10.10 at $404.40 Wednesday. Prices closed nearer the session low again today. The meal bulls have quickly faded. The bars now have the slight near-term technical advantage.

The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at this week’s high of $422.70. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at last week’s low of $390.20. First resistance comes in at $408.90 and then at $410.00. First support is seen at Wednesday’s low of $403.50 and then at $400.00. Wyckoff's Market Rating: 4.5

July bean oil closed down 37 points at 48.85 cents Wednesday. Prices closed near mid-range. The bean oil bears have the solid overall near-term technical advantage. The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at last week’s high of 50.23 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at last week’s contract low of 48.08 cents. First resistance is seen at Wednesday’s high of 49.25 cents and then at 49.50 cents. First support is seen at 48.50 cents and then at Wednesday’s low of 48.30 cents. Wyckoff's Market Rating: 2.0

July Chicago SRW wheat closed down 10 cents at $7.21 Wednesday. Prices closed nearer the session low on a corrective pullback from recent gains and on a generally lower raw commodity sector Wednesday, led by crude oil.

There is a bullish head-and-shoulders bottom reversal pattern that has formed on the daily bar chart. The wheat market bulls and bears are on a level near-term technical playing field but the bulls have to show fresh power soon to keep that status.

Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at the March high of $7.40 1/2 a bushel. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at this week’s low of $6.93. First resistance is seen at Wednesday’s high of $7.32 1/4 and then at this week’s high of $7.36 3/4. First support lies at Wednesday’s low of $7.13 1/4 and then at $7.05. Wyckoff's Market Rating: 5.0.

July HRW wheat closed down 7 1/4 cents at $7.82 1/4 Wednesday. Prices closed nearer the session low on a corrective pullback from recent gains. There is a bullish head-and-shoulders bottom reversal pattern that has formed on the daily bar chart. The wheat market bulls and bears are now on a level near-term technical playing field.

Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at $8.00. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $7.50. First resistance is seen at Wednesday’s high of $7.93 and then at $8.00. First support is seen at Wednesday’s low of $7.76 3/4 and then at $7.63 3/4. Wyckoff's Market Rating: 5.0

July oats closed down 11 1/2 cents at $3.80 1/4 Wednesday. Prices closed nearer the session low on profit taking. Oats bulls still have the overall near-term technical advantage but did fade Wednesday. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at $3.75.

Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at this week’s high of $4.00. First support lies at Wednesday’s low of $3.77 1/2 and then at $3.75. First resistance is seen at $3.85 and then at $3.88. Wyckoff's Market Rating: 6.0

Click here for "Today’s Hot Market" item on my website.

Questions? Just email me at jim@jimwyckoff.com. I enjoy hearing from my readers worldwide.

~Jim

 

TheCropSite News Desk

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.



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