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Jim Wyckoff's Tuesday Closing Grains: Soybeans Closed Sharply Higher

Jim Wyckoff's Tuesday Closing Grains: Soybeans Closed Sharply Higher

03 September 2013
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed down 6 3/4 cents at $4.75 1/4 Tuesday. Prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart.

It appears the weather market that has supported soybeans and to a lesser degree for corn has done all it can do for the bulls. A fledgling uptrend line on the daily bar chart was negated today. While the bulls have faded my bias is that a market low is in place for the corn market. Price action in corn could be choppy and sideways until the end of the year. Corn bulls' next upside price objective is to push and close prices above major technical resistance at $5.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $4.70. First resistance for December corn is seen at $4.80 and then at $4.85. First support is seen at $4.70 and then at last week’s low of $4.63 1/2. Wyckoff's Market Rating: 2.5

November soybeans closed up 29 1/4 cents at $13.86 3/4 a bushel Tuesday. Prices closed nearer the session low. Weather in the U.S. Corn Belt will again turn dry and hot after disappointing rains in the region over the weekend. This remains bullish for soybeans. This weather pattern has and will damage soybean yield potential. Soybean bulls have the solid overall 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 the contract high of $14.09 3/4 a bushel, scored in September of last year. The next downside price breakout objective for the bears is pushing prices below solid technical support at $13.46. First support is seen at Tuesday’s low of $13.78 1/2 and then at $13.70 1/2. First resistance is seen at $14.00 and then at $14.09 3/4. Wyckoff's Market Rating: 8.0.

December soybean meal closed up $15.20 at $438.90 Tuesday. Prices closed near mid-range but did close at a fresh contract high close. The meal bulls have the solid overall near-term technical advantage. The next upside price 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 $420.30, which is the bottom of a big upside price gap on the daily bar chart. First resistance comes in at Tuesday’s high of $443.70 and then at the contract high of $445.80. First support is seen at Tuesday’s low of $433.80 and then at $430.00. Wyckoff's Market Rating: 8.0

December bean oil closed down 10 points at 44.19 cents Tuesday. Prices closed nearer the session low. The bears have the overall near-term technical advantage. However, a fledgling uptrend is in place on the daily bar chart. The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at the August high of 45.32 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 42.67 cents. First resistance is seen at 44.50 cents and then at 44.90 cents. First support is seen at Tuesday’s low of 43.82 cents and then at 43.50 cents. Wyckoff's Market Rating: 3.0

December Chicago SRW wheat closed down 6 3/4 cents at $6.47 1/4 Tuesday. Prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart. 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 the August high of $6.79 3/4 a bushel. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at the contract low of $6.35 1/2. First resistance is seen at $6.58 and then at Tuesday’s high of $6.64. First support lies at Tuesday’s low of $6.45 and then at $6.40. Wyckoff's Market Rating: 2.0.

December HRW wheat closed down 4 1/2 cents at $6.99 Tuesday. Prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart. The HRW wheat market bears have the overall near-term technical advantage as prices hover near the recent contract low. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at the August high of $7.26. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $6.75. First resistance is seen at Tuesday’s high of $7.11 1/4 and then at $7.17 1/4. First support is seen at the contract low of $6.93 and then at $6.85. Wyckoff's Market Rating: 1.0

December oats closed down 10 1/4 cents at $3.30 Tuesday. Prices closed nearer the session low as bears regained downside momentum and have regained the near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at the contract low of $3.20. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.45. First support lies at Tuesday’s low of $3.26 1/2 and then at $3.24 1/2. First resistance is seen at $3.33 and then at $3.35. Wyckoff's Market Rating: 2.5

Click below for my latest "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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