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Jim Wyckoff's Wednesday Closing Grains: Corn Closes Higher

22 May 2013
Jim Wyckoff Commentary -  TheCropSite

US - July corn futures closed up 18 1/2 cents at $6.58 1/2 Wednesday. Prices closed near the session high on heavy short covering.

Traders on this day decided to focus on planting delays that are still occurring in the U.S. Corn Belt, and not on the bearish implications of recharged soil moisture profiles in the Corn Belt. The corn market bears still have the slight overall near-term technical advantage.

Corn bulls' next upside price objective is to push and close prices above solid technical resistance at the April 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 $6.32 1/2.

First resistance for July corn is seen at this week’s high of $6.60 3/4 and then at $6.67. First support is seen at $6.50 and then at $6.45. Wyckoff's Market Rating: 4.5

July soybeans closed up 16 cents at $14.94 1/4 a bushel Wednesday. Prices closed near the session high and hit a fresh eight-month high. A tight U.S. cash soybean market is bullish for soybeans.

The soybean market bulls have the solid near-term technical advantage and gained more upside momentum Wednesday. Prices are in a steep four-week-old uptrend on the daily bar chart. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $15.00 a bushel.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $14.50. First resistance is seen at $15.00 and then at $15.20. First support is seen at $14.83 1/2 and then at $14.75. Wyckoff's Market Rating: 7.5.

July soybean meal closed up $1.90 at $440.60 Wednesday. Prices closed near the session high and hit another fresh eight-month high. The meal bulls have the solid near-term technical advantage. Prices are in a choppy five-week-old uptrend on the daily bar chart.

The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at $450.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at this week’s low of $424.70.

First resistance comes in at Wednesday’s high of $440.80 and then at $442.50. First support is seen at $435.00 and then at Tuesday’s low of $431.20. Wyckoff's Market Rating: 7.0

July bean oil closed up 16 points at 49.64 cents Wednesday. Prices closed nearer the session high. Short covering in a bear market was again featured. The bean oil bears still have the 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 50.00 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the May low of 48.30 cents.

First resistance is seen at Wednesday’s high of 49.74 cents and then at 50.00 cents. First support is seen at Wednesday’s low of 49.39 cents and then at 49.00 cents. Wyckoff's Market Rating: 3.0

July Chicago SRW wheat closed up 8 cents at $6.88 1/2 Wednesday. Prices closed nearer the session high and saw short covering in a bear market. The wheat market bears still have the solid near-term technical advantage.

Prices are in a three-week-old downtrend on the daily bar chart. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $7.00 a bushel.

The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at the April low of $6.64 3/4. First resistance is seen at Wednesday’s high of $6.92 3/4 and then at $7.00. First support lies at Wednesday’s low of $6.80 and then at this week’s low of $6.74. Wyckoff's Market Rating: 2.5.

July HRW wheat closed up 4 3/4 cents at $7.43 1/4 Wednesday. Prices closed near mid-range and saw short covering in a bear market. The HRW wheat market bears still have the solid near-term technical advantage.

Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at last week’s high of $7.73 1/2. The bears' next downside breakout objective is pushing and closing prices below solid technical support at the April low of $7.11 1/2.

First resistance is seen at $7.50 and then at $7.60. First support is seen at Wednesday’s low of $7.38 3/4 and then at this week’s low of $7.31 1/2 and then at $7.25. Wyckoff's Market Rating: 2.5

July oats closed up 11 1/2 cents at $3.66 1/2 Wednesday. Prices closed near the session high and scored a bullish “outside day” up on the daily bar chart after hitting a fresh five-week low early on.

Oats bears still have the overall near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at the April low of $3.48.

Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.75. First support lies at $3.63 and then at $3.60. First resistance is seen at $3.69 and then at $3.72. Wyckoff's Market Rating: 4.0

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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