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Wyckoff's Closing Grains: Corn Closes Lower

14 January 2014
Jim Wyckoff Commentary -  TheCropSite

US - March corn futures closed down 3 cents at $4.31 1/2 Tuesday. Prices closed nearer the session high and saw a mild corrective pullback after recent solid gains.

Price action last Friday produced a bullish "key reversal" up on the daily bar chart, which suggests the corn futures market has put in a major low.

Corn bears still have the overall near-term technical advantage, but the bulls have upside momentum on their side at present.

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 support at $4.18 1/2.

First resistance for March corn is seen at this week's high of $4.35 1/2 and then at $4.40 3/4. First support is seen at today's low of $4.27 1/4 and then at $4.25. Wyckoff's Market Rating: 2.5

March soybeans closed up 13 3/4 cents at $13.08 a bushel Tuesday. Prices closed nearer the session high and hit a two-week high on more short covering and bargain hunting. Soybean bulls and bears are back on a level near-term technical playing field.

The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at the December high of $13.39 1/4 a bushel.

The next downside price breakout objective for the bears is pushing prices below solid technical support at the January low of $12.62 1/2.

First resistance is seen at today's high of $13.16 3/4 and then at $13.20. First support is seen at $13.00 and then at today's low of $12.88 1/2. Wyckoff's Market Rating: 5.0.

March soybean meal closed up $8.30 at $430.20 Tuesday. Prices closed nearer the session high and hit a three-week high on more short covering and bargain hunting. Bulls have regained the near-term technical advantage.

The next upside price objective for the bulls is to produce a close above solid technical resistance at the December high of $440.40.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $410.00. First resistance comes in at today's high of $434.70 and then at $436.80. First support is seen at $425.00 and then at $420.00. Wyckoff's Market Rating: 6.0

March bean oil closed down 10 points at 37.74 cents Tuesday. Prices closed nearer the session 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 39.00 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 38.12 cents and
then at 38.30 cents.

First support is seen at today's low of 37.62 cents and then at the contract low of 37.42 cents. Wyckoff's Market Rating: 1.0

March Chicago SRW wheat closed up 6 cents at $5.79 1/2 Tuesday. Prices closed near the session high on more short covering and some bargain hunting.

Prices Friday hit a contract low. Given the solid gains in corn recently, I suspect the downside in wheat is limited, if corn continues to hold its ground.

But right now 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 $6.00 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 $5.60 1/2.

First resistance is seen at $5.85 and then at $5.90. First support lies at this week's low of $5.70 and then at the contract low of $5.60 1/2. Wyckoff's Market Rating: 2.0.

March HRW wheat closed up 11 1/4 cents at $6.31 Tuesday. Prices closed nearer the session high after hitting another fresh contract low early on.

Prices scored a bullish "outside day" up today, and if there is good follow-through buying on Wednesday, then a significantly bullish "key reversal" up on the daily bar chart would be confirmed.

That would be an early clue that a major market low is in place in this wheat flavor. But right now the HRW wheat market bears still 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 January high of $6.51.

The bears' next downside breakout objective is pushing and closing prices below solid technical support at $6.00.

First resistance is seen at today's high of $6.33 1/2 and then at $6.40. First support is seen at
today's contract low of $6.17 and then at $6.10. Wyckoff's Market Rating: 2.0

March oats closed down 3 cents at $3.90 Tuesday. Prices closed near mid-range. Prices are hovering near a 13-month high.

Bulls have the solid overall near-term technical advantage. Prices are in an accelerating 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 $3.75.

Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $4.00.

First support lies at today's low of $3.87 and then at this week's low of $3.83 1/2. First resistance is seen at today's high of $3.93 and then at last week's high of $3.95 1/4 and then at $4.00. Wyckoff's Market Rating: 7.5

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.



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