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Wyckoff's Closing Grains: Corn Closes Lower

07 January 2014
Jim Wyckoff Commentary -  TheCropSite

US - March corn futures closed down 2 cents at $4.25 3/4 Tuesday. Prices closed nearer the session low. Traders are awaiting Friday's USDA quarterly grain stocks report.

Corn bears are in firm overall near-term technical control as prices last week set a contract low. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at the December high of $4.40 3/4.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at the contract low of $4.17.

First resistance for March corn is seen at today's high of $4.30 and then at $4.35. First support is seen at this week's low of $4.23 1/2 and then at $4.20. Wyckoff's Market Rating: 1.5

March soybeans closed down 2 1/4 cents at $12.74 1/2 a bushel Tuesday. Prices closed near mid-range. Traders are awaiting Friday's USDA quarterly grain stocks report. Soybean bears have the overall near-term technical advantage.

A bear flag has now formed 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 resistance is seen at today's high of $12.83 and then at $12.92 3/4. First support is seen at today's low of $12.66 and then at last week's low of $12.62 1/2. Wyckoff's Market Rating: 4.0.

March soybean meal closed up $2.00 at $415.80 Tuesday. Prices closed nearer the session high on short covering. Bears still 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 $425.00.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at last week's low of $403.40. First resistance comes in at today's high of $418.90 and then at 420.00. First support is seen at $412.00 and then at today's low of $410.60. Wyckoff's Market Rating: 4.5

March bean oil closed down 19 points at 37.93 cents Tuesday. Prices closed near mid-range and hit another fresh contract low. The bean oil bears 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 39.50 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 37.00 cents.

First resistance is seen at today's high of 38.26 cents and then at this week's high of 38.68 cents. First support is seen at today's contract low of 37.65 cents and then at 37.50 cents. Wyckoff's Market Rating: 1.0

March Chicago SRW wheat closed down 3 1/4 cents at $6.02 1/2 Tuesday. Prices closed near the session low. Prices are still hovering near the recent contract low. Arctic weather in the U.S. midsection could produce some winter kill of the wheat crop, but the market has not paid much attention to that matter this week.

Traders are awaiting Friday's USDA quarterly grain stocks report. The wheat bears have the solid near-term technical advantage.

Wheat bulls' next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $6.25 a bushel. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $5.75. First resistance is seen at this week's high of $6.12 3/4 and then at $6.21 1/4. First support lies at $6.00 and then at the contract low of $5.95 1/2. Wyckoff's Market Rating: 1.0.

March HRW wheat closed up 1 1/4 cents at $6.45 1/4 Tuesday. Prices closed near mid-range. Tepid short covering was seen again today after prices last week hit a contract low. 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 $6.75.

The bears' next downside breakout objective is pushing and closing prices below solid technical support at $6.25. First resistance is seen at this week's high of $6.50 3/4 and then at $6.58 1/2.

First support is seen at today's low of $6.41 1/2 and then at the contract low of $6.30 1/4. Wyckoff's Market Rating: 1.5

March oats closed up 12 3/4 cents at $3.63 1/2 Tuesday. Prices closed nearer the session high and hit a fresh six-month high. Bulls have the solid overall near-term technical advantage and gained fresh power today.

Prices are in a choppy three-month-old uptrend on the daily bar chart. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at last week's low of $3.40 3/4. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.75. First support lies at $3.59 and then at $3.58. First resistance is seen at today's high of $3.64 1/2 and then at $3.70. Wyckoff's Market Rating: 7.0

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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