TheCropSite.com- news, features, articles and disease information for the crop industry

News

Wyckoff's Closing Grains: Corn Closes Higher Thursday

Wyckoff's Closing Grains: Corn Closes Higher Thursday

08 August 2013
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed up 1 1/4 cents at $4.59 1/4 Thursday. Prices closed nearer the session low and closed at another fresh 2.5-year low close.

There are still no early clues of a market bottom being close at hand for corn. However, corn is short-term technically oversold and my bias is that prices near $4.50 are also a value buying opportunity, on a longer-term basis.

Weather in the U.S. Corn Belt has become a non-event for the corn and soybean crops. The next big fundamental events are next Monday’s USDA crop production report and the late-August Pro Farmer Midwest Crop Tour. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $4.75. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $4.50. First resistance for December corn is seen at this week’s high of $4.65 and then at $4.70. First support is seen at this week’s low of $4.55 and then at $4.50. Wyckoff's Market Rating: 1.0

November soybeans closed up 17 cents at $11.82 3/4 a bushel Thursday. Prices closed nearer the session high on short covering in a bear market. Prices Wednesday hit a 14-month low. The soybean market bears are still in firm technical command. Weather in the U.S. Corn Belt has turned into a non-event.

There has been decent export demand for U.S. soybeans that is giving the bulls some hope that a market bottom is not far away. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $12.00 a bushel. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $11.50. First support is seen at $11.75 and then at this week’s low of $11.62 1/2. First resistance is seen at Thursday’s high of $11.90 and then at $12.00. Wyckoff's Market Rating: 1.5.

December soybean meal closed up $9.30 at $356.70 Thursday. Prices closed nearer the session high on short covering. The meal bears still have the near-term technical advantage. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at $368.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at this week’s low of $345.30. First resistance comes in at Thursday’s high of $358.80 and then at $360.00. First support is seen at $355.00 and then at $350.00. Wyckoff's Market Rating: 3.0

December bean oil closed down 4 points at 42.06 cents Thursday. Prices closed near the session low and hit another fresh contract low. The bears remain in full command. There are no early clues to suggest a market bottom is close at hand. The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at this week’s high of 43.31 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 41.00 cents. First resistance is seen at Thursday’s high of 42.39 cents and then at 42.50 cents. First support is seen at Thursday’s contract low of 42.04 cents and then at 41.80 cents. Wyckoff's Market Rating: 1.0

December Chicago SRW wheat closed down 2 3/4 cents at $6.53 1/3 Thursday. Prices closed nearer the session low and closed at a fresh contract low close. The wheat market bears have the solid overall near-term technical advantage. There are still no early technical clues of a market bottom being close at hand. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $6.80 a bushel. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $6.50. First resistance is seen at $6.60, at $6.66 1/4 and then at $6.75. First support lies at Wednesday’s contract low of $6.51 1/4 and then at $6.50. Wyckoff's Market Rating: 1.0.

December HRW wheat closed down 1/4 cent at $7.07 1/4 Thursday. Prices closed near mid-range. The HRW wheat market bears have the solid overall near-term technical advantage. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at the July high of $7.37 1/2. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $6.75. First resistance is seen at $7.13 and then at $7.20. First support is seen at Thursday’s low of $7.03 and then at last week’s contract low of $6.98 1/2. Wyckoff's Market Rating: 1.0

December oats closed up 1/4 cent at $3.27 Thursday. Prices closed near mid-range. Bears have the solid near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at $3.10. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.40. First support lies at $3.25 and then at Wednesday’s low of $3.22 3/4 and then at the contract low of $3.20. First resistance is seen at Thursday’s high of $3.29 1/2 and then at $3.33. Wyckoff's Market Rating: 1.5

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.



Our Sponsors

Partners


Seasonal Picks

Country Dance