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Wyckoff's Closing Grains: Corn Closes Steady

02 October 2013
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed steady at $4.39 Wednesday. Prices closed near mid-range and poked to another fresh three-year low.

Near-term fundamentals are bearish, including U.S. harvest pressure ramping up and pressuring cash basis levels. However, keep an eye on the wheat market.

If wheat futures prices continue to rally, that could soon put in the "harvest low" in the corn futures market.

Corn bulls' next upside price objective is to push and close prices above solid technical resistance at this week's high of $4.62.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $4.25.

First resistance for December corn is seen at Tuesday's high of $4.44 3/4 and then at $4.50. First support is seen at Wednesday's low of $4.35 and then at $4.30. Wyckoff's Market Rating: 1.0

November soybeans closed up 6 1/2 cents at $13.74 1/2 a bushel Wednesday. Prices closed near mid-range and saw short covering from recent selling pressure. U.S. harvest pressure is hurting soybean futures prices.

Cash soybean basis levels are also weaker. Soybean bears have the overall near-term technical advantage.

Prices are in a five-week-old downtrend 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 $13.00 a bushel.

The next downside price breakout objective for the bears is pushing prices below solid technical support at $12.50. 

First support is seen at this week's low of $12.63 1/2 and then at $12.50. First resistance is seen at Wednesday's high of $12.82 and then at $12.90. Wyckoff's Market Rating: 3.5.

December soybean meal closed up $9.00 at $412.30 Wednesday. Prices closed near the session high and saw short covering from recent selling pressure.

The meal bears still have the slight overall near-term technical advantage. The next upside price objective for the bulls is to produce a close above solid technical resistance at $420.00.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $390.00. First resistance comes in at $415.00 and then at $420.00. First support is seen at $410.00 and then at $405.00. Wyckoff's Market Rating: 4.5

December bean oil closed down 92 points at 39.35 cents Wednesday. Prices closed nearer the session low and careened to another contract low.

The bears have the solid overall near-term technical advantage. The market is now short-term overdone on the downside and due for at least a decent corrective bounce.

The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at 41.00 cents.

Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 38.00 cents. First resistance is seen at 40.00 cents and then at Wednesday's high of 40.33 cents. First support is seen at Wednesday's contract low of 39.20 cents and then at 39.00 cents. Wyckoff's Market Rating: 1.0

December Chicago SRW wheat closed up 4 3/4 cents at $6.86 Wednesday. Prices closed nearer the session high and closed at a fresh 11-week high close. Good worldwide demand for U.S. wheat continues to underpin this market.

The wheat market could pull corn out of its doldrums soon, too. A bullish rounding-bottom reversal pattern has formed on the daily bar chart.

The wheat market bulls now have the slight near-term technical advantage. Wheat bulls' next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at this week's high of $6.94 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 $6.65.

First resistance is seen at Wednesday's high of $6.89 3/4 and then at $6.94 3/4. First support lies at Wednesday's low of $6.78 and then at this week's low of $6.72 1/2. Wyckoff's Market Rating: 5.5.

December HRW wheat closed up 9 1/2 cents at $7.54 1/2 Wednesday. Prices closed nearer the session high and hit a fresh 3.5-month high. The HRW wheat market bulls have the overall near-term technical advantage.

Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $7.75.

The bears' next downside breakout objective is pushing and closing prices below solid technical support at $7.25.

First resistance is seen at Wednesday's high of $7.56 3/4 and then at $7.65. First support is seen at Wednesday's low of $7.42 3/4 and then at $7.35. Wyckoff's Market Rating: 6.0

December oats closed down 1 1/4 cents at $3.13 3/4 Wednesday. Prices closed near mid-range. 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 contract low of $3.03.

Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.25 3/4.

First support lies at this week's low of $3.10 1/4 and then at $3.07 1/2. First resistance is seen at Tuesday's high of $3.18 and then at $3.20. Wyckoff's Market Rating: 2.0

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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