TheCropSite.com- news, features, articles and disease information for the crop industry

News

Wyckoff's Closing Grains: Corn Closes Lower

12 February 2014
Jim Wyckoff Commentary -  TheCropSite

US - March corn futures closed down 1 1/2 cents at $4.41 1/2 Tuesday.

Prices closed nearer the session high today on some downside corrective pressure after hitting a three-month high on Monday. Corn prices are still in a four-week-old uptrend on the daily bar chart to suggest that a major market low is in place. However, the bulls need to show some fresh power soon to keep their upside technical momentum.

Corn bears still have the overall near-term technical advantage. 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 support at $4.30. First resistance for March corn is seen at today’s high of $4.44 and then at last week’s high of $4.47 1/2. First support is seen at $4.40 and then at today’s low of $4.37 1/4. Wyckoff's Market Rating: 3.5

March soybeans closed up 9 1/4 cents at $13.34 3/4 a bushel Tuesday. Prices closed nearer the session high. Bulls today gained some fresh upside near-term technical momentum. Prices Monday hit a five-month high. Soybean bulls have the 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 $13.50 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $13.00. First resistance is seen at this week’s high of $13.40 and then at $13.45. First support is seen at $13.25 and then at today’s low of $13.12 1/2. Wyckoff's Market Rating: 6.5.

March soybean meal closed up $5.20 at $449.20 Tuesday. Prices closed nearer the session high and hit another contract high today. Prices also scored a bullish “outside day” up on the daily bar chart today. There was not follow-through selling pressure Tuesday and a bearish “key reversal” down was not confirmed on the daily bar chart.

Bulls have the solid near-term technical advantage. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at $465.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $430.00. First resistance comes in at today’s contract high of $451.10 and then at $455.00. First support is seen at $445.00 and then at $442.50. Wyckoff's Market Rating: 8.0

March bean oil closed up 12 points at 38.85 cents Tuesday. Prices closed nearer the session high on more short covering. Prices today closed at a fresh six-week high close, to begin to suggest a major market low is in place. The bean oil bears do still 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 40.00 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the contract low of 36.80 cents. First resistance is seen at 39.00 cents and then at this week’s high of 39.24 cents. First support is seen at today’s low of 38.47 cents and then at 38.25 cents. Wyckoff's Market Rating: 2.5

March Chicago SRW wheat closed up 5 1/2 cents at $5.90 1/4 Tuesday. Prices closed nearer the session high today on more short covering and bargain hunting. Bulls are gaining enough upside near-term technical momentum to begin to suggest that a major market low is in place. But right now the wheat bears still have the overall 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 $5.50 1/4. First resistance is seen at last week’s high of $5.88 3/4 and then at $5.95. First support lies at today’s low of $5.82 1/2 and then at $5.75. Wyckoff's Market Rating: 2.5.

March HRW wheat closed up 2 3/4 cents at $6.65 1/2 Tuesday. Prices closed near mid-range and hit another seven-week high today. More short covering and bargain hunting were featured. Recent price action is a solid clue that a major market low is in place. But right now the wheat bears still have the overall near-term technical advantage. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at $7.00. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $6.25. First resistance is seen at today’s high of $6.69 3/4 and then at $6.75. First support is seen at $6.60 and then at $6.51. Wyckoff's Market Rating: 3.5

March oats closed up 15 1/4 cents at $4.37 1/4 Tuesday. Prices closed nearer the session high on a corrective bounce from strong losses Monday. Monday’s price action did confirm a bearish “key reversal down” on the daily bar chart. That is a solid clue that a market top is in place. But right now the bulls have the overall near-term technical advantage.

Prices are in a four-month-old uptrend on the daily bar chart. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at $4.00. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at Friday’s contract high of $4.67 1/4. First support lies at $4.30 and then at $4.25. First resistance is seen at today’s high of $4.40 3/4 and then at $4.45. 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.



Our Sponsors

Partners


Seasonal Picks

Country Dance