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Wyckoff's Closing Grains: Corn Closes Higher

14 February 2014
Jim Wyckoff Commentary -  TheCropSite

US - March Corn closed up a 1/2-cent at 4.40 1/2. March corn closed fractionally higher on Thursday.

The USDA reported 50 million bushels of old corn crop sales this past week. Year-to-date sales and shipments total 1.36 billion bushels, which is 85% of the USDA's forecast for the entire marketing year.

The mid-range close sets the stage for a steady opening when Friday's night session begins trading.

Stochastics and the RSI are bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 4.34 1/2 would confirm that a short-term top has been posted.

Closes above November's high crossing at 4.49 1/2 could open the door for a possible test of weekly resistance crossing at 4.71 1/4 later this winter. First resistance is November's high crossing at 4.49 1/2.

Second resistance is weekly resistance crossing at 4.71 1/4. First support is the 20-day moving average crossing at 4.34 1/2. Second support is the reaction low crossing at 4.21.

March wheat closed up 8 1/4-cents at 5.95 1/2. March wheat closed higher on Thursday as it extends the rally off January's low.

The USDA indicated that wheat exports were 23 million bushels of which most was old crop. This was in line with trade guesses and is above the rate needed to meet USDA's 2013 crop forecast.

The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term.

If March extends the rally off January's low, the 38% retracement level of the October-January decline crossing at 6.14 3/4 is the next upside target.

Closes below the 20-day moving average crossing at 5.71 3/4 would confirm that a short-term top has been posted. First resistance is today's high crossing at 5.96 3/4. Second resistance is the 38% retracement level of the October-January decline crossing at 6.14 3/4.

First support is the 20-day moving average crossing at 5.71 3/4. Second support is January's low crossing at 5.50 1/4.

March Kansas City Wheat closed up 9 3/4-cents at 6.72 3/4. March Kansas City wheat closed higher on Thursday.

The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term.

If March extends this week's rally, the 50% retracement level of the October-January decline crossing at 6.88 3/4 is the next upside target. First resistance is today's high crossing at 6.72 3/4. Second resistance is the 50% retracement level of the October-January decline crossing at 6.883/4. First support is the 10-day moving average crossing at 6.50. Second support is the 20-day moving average crossing at 6.36.

March soybeans closed up 21 1/4-cents at 13.44 1/4. March soybeans closed sharply higher on Thursday as it broke out above resistance marked by December's high crossing at 13.40. Weekly export sales were only 6.4 million bushels of old crop and 4.5 million of new crop soybeans.

China was the leading buyer, but most of its 11.8 million bushels came from deals previously allocated to unknown destinations. No new outright cancellations were included in today's report, which helped to trigger a rebound off lows.

The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading.

Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the aforementioned rally, last September's high crossing at 13.77 3/4 is the next upside target. Closes below the 20-day moving average crossing at 13.03 would confirm that a short-term top has been posted. First resistance is today's high crossing at 13.44 1/4.

Second resistance is last September's high crossing at 13.77 3/4. First support is the 20-day moving average crossing at 13.03. Second support is January's low crossing at 12.60.

March soybean meal closed up $9.30 at 452.80. March soybean meal closed higher on Thursday as it extends the rally off November's low.

The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off January's low, weekly resistance crossing at 458.50 is the next upside target.

Closes below the 20-day moving average crossing at 434.30 would confirm that a short- term top has been posted. First resistance is today's high crossing at 455.00. Second resistance is weekly resistance crossing at 458.50.

First support is the 10-day moving average crossing at 443.10. Second support is the 20-day moving average crossing at 434.30.

March soybean oil closed up 55-pts. at 39.54. March soybean oil closed higher on Thursday as it extends this month's rally.

The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term.

If March extends the rally off last Friday's low, the reaction high crossing at 40.00 is the next upside target.

Closes below the 20-day moving average crossing at 38.01 would confirm that a short-term top has been posted. First resistance is today's high crossing at 39.60. Second resistance is the reaction high crossing at 40.00.

First support is the 10-day moving average crossing at 38.44. Second support is the 20-day moving average crossing at 38.01.

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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