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Wyckoff's Wednesday Closing Grains: Corn, Wheat Reflect Bearish USDA Report

Wyckoff's Wednesday Closing Grains: Corn, Wheat Reflect Bearish USDA Report

12 June 2013
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed down 13 1/4 cents at $5.37 1/2 Wednesday.

Prices closed nearer the session low and hit a fresh two-week low in the wake of a bearish monthly USDA supply and demand report. Bears have the overall near-term technical advantage and gained some fresh downside momentum today. A bull flag pattern on the daily bar chart was negated Wednesday. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $5.60. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $5.25. First resistance for December corn is seen at $5.40 and then at $5.45. First support is seen at Wednesday’s low of $5.32 1/4 and then at $5.30. Wyckoff's Market Rating: 3.5

November soybeans closed down 12 3/4 cents at $13.14 1/4 a bushel Wednesday. Prices closed near mid-range today and were pulled lower on profit taking and by the lower corn and wheat market prices. The soybean market bulls still have the overall near-term technical advantage. Prices are still in a six-week-old uptrend on the daily bar chart. Wednesday monthly USDA supply and demand report was deemed neutral for soybeans. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at last week’s high of $13.33 a bushel. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at last week’s low of $12.85 1/4. First resistance is seen at $13.25 and then at $13.33. First support is seen at $13.00 and then at $12.85 1/4. Wyckoff's Market Rating: 7.0.

December soybean meal closed down $8.10 at $389.90 Wednesday. Prices closed near mid-range and saw profit taking. The meal bulls still have the near-term technical advantage. Prices are in a six-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 $400.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at last week’s low of $378.90. First resistance comes in at $393.00 and then at $395.00. First support is seen at $385.00 and then at Wednesday’s low of $381.60. Wyckoff's Market Rating: 7.0

December bean oil closed up 32 points at 47.42 cents Wednesday. Prices closed nearer the session high on short covering in a bear market. The bean oil bears still 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 48.25 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 46.00 cents. First resistance is seen at 47.50 cents and then at Tuesday’s high of 47.63 cents. First support is seen at this week’s low of 47.08 cents and then at the contract low of 46.95 cents. Wyckoff's Market Rating: 1.0

December Chicago SRW wheat closed down 14 1/4 cents at $7.05 1/4 Wednesday. Prices closed nearer the session low and hit a fresh three-week low today. The market was pressured by lower corn prices and a mildly bearish monthly USDA supply and demand report. The wheat market bears have the solid overall near-term technical advantage. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $7.25 a bushel. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at the May low of $6.97. First resistance is seen at $7.11 and then at Wednesday’s high of $7.18 1/2. First support lies at Wednesday’s low of $7.01 1/4 and then at $6.97. Wyckoff's Market Rating: 2.0.

December HRW wheat closed down 15 1/4 cents at $7.38 3/4 Wednesday. Prices closed near the session low and hit a fresh 12-month low today. The HRW wheat market bears have the solid overall near-term technical advantage and gained more downside momentum Wednesday. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at this week’s high of $7.59 1/4. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $7.00. First resistance is seen at $7.50 and then at $7.56 1/2. First support is seen at Wednesday’s low of $7.38 and then at $7.30. Wyckoff's Market Rating: 1.5

December oats closed down 1 1/2 cents at $3.82 1/2 Wednesday. Prices closed nearer the session high. Oats bulls still have the solid near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at $3.74. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at the October 2012 high of $3.92 3/4. First support lies at $3.80 and then at $3.76 3/4. First resistance is seen at Wednesday’s high of $3.86 and then at this week’s high of $3.88. Wyckoff's Market Rating: 7.0

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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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