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Wyckoff's Closing Grains: Corn Closes Lower

04 November 2013
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed down 1 cent at $4.26 1/4 Monday. Prices closed nearer the session low and hit another fresh three-year low today.

Strong USDA export sales data recently has been trumped by cash corn sales and the related hedge pressure in the futures markets.

Corn bears are in full near-term technical command. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $4.50.

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 $4.32 and then at $4.36 1/4. First support is seen at $4.25 and then at $4.20. Wyckoff's Market Rating: 1.0

January soybeans closed up 5 cents at $12.56 1/2 a bushel Monday. Prices closed near mid-range on tepid short covering.

Prices Friday hit a 2.5-month low and closed at a bearish weekly low close. Solid USDA export sales data recently has been trumped by hedge-related selling from heavy sales from the U.S. farmer in the cash market.

Soybean bears now have the slight 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 $12.90 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $12.50.

First resistance is seen at today's high of $12.63 and then at $12.71 1/4. First support is seen at $12.50 and then at $12.40. Wyckoff's Market Rating: 4.5.

December soybean meal closed up $2.00 at $396.90 Monday. Prices closed nearer the session high on short covering after hitting 2.5-month low early on. Bears have the slight near-term technical advantage.

The next upside price objective for the bulls is to produce a close above solid technical resistance at $415.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $380.00.

First resistance comes in at $400.00 and then at $404.60. First support is seen at today's low of $392.30 and then at $390.00. Wyckoff's Market Rating: 4.5

December bean oil closed down 34 points at 41.25 cents Monday. Prices closed nearer the session low. The bears 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 the October high of 42.12 cents.

Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the October low of 39.20 cents. First resistance is seen at 41.50 cents and then at today's high of 41.95 cents.

First support is seen at today's low of 41.01 cents and then at 40.75 cents. Wyckoff's Market Rating: 2.5

December Chicago SRW wheat closed down 5 cents at $6.62 3/4 Monday. Prices closed nearer the session low and hit a fresh six-week low.

Bears have the near-term technical advantage. The higher prices have choked off some export
demand for U.S. wheat. Wheat bulls' next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $6.85 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 today's high of $6.71 1/2 and then at $6.77. First support lies at today's low of $6.62 and then at $6.57. Wyckoff's Market Rating: 4.0.

December HRW wheat closed down 4 1/4 cents at $7.29 1/4 Monday. Prices closed near the session low and hit a fresh four-week low today.

Prices Friday closed at a bearish weekly low close. The HRW wheat market bears have the near-term technical advantage. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $7.50.

The bears' next downside breakout objective is pushing and closing prices below solid technical support at $7.00. First resistance is seen at today's high of $7.36 1/2 and then at $7.42 1/4. First support is seen at today's low of $7.28 1/4 and then at $7.25. Wyckoff's Market Rating: 4.0

December oats closed up 2 3/4 cents at $3.32 1/4 Monday. Prices closed nearer the session high. Bulls and bears are on a level near-term technical playing field.

Bears' next downside price breakout objective is pushing and closing prices below solid technical support at $3.20. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at the October high of $3.48 1/4.

First support lies at today's low of $3.28 and then at last week's low of $3.25. First resistance is seen at $3.35 and then at $3.37. Wyckoff's Market Rating: 5.0

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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