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Wyckoff's Closing Grains: Corn Closed Higher

20 February 2014
Jim Wyckoff Commentary -  TheCropSite

US - May corn futures closed up 5 1/4 cents at $4.60 3/4 Wednesday.

Prices closed near the session high today and hit a fresh nearly four-month high. Corn prices are in a six-week-old uptrend on the daily bar chart to suggest that a major market low is in place. Corn bears have the slight overall near-term technical advantage, but the bulls have good upside momentum.

Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $4.70. The next downside price breakout objective for the bears is pushing and closing prices below solid support at last week’s low of $4.43. First resistance for March corn is seen at today’s high of $4.61 and then at $4.65. First support is seen at $4.58 1/2 and then at $4.55 3/4. Wyckoff's Market Rating: 4.5

May soybeans closed down 5 cents at $13.42 3/4 a bushel Wednesday. Prices closed nearer the session low after hitting a fresh 17-month high early on. Profit taking was featured today. The market has been boosted by recent good U.S. export demand and by reports of some late-season crop stress in South American soybean regions. Soybean bulls have the solid 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 the contract high of $13.75 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $13.25. First resistance is seen at $13.49 and then at today’s high of $13.58 1/2. First support is seen at today’s low of $13.38 1/4 and then at $13.30. Wyckoff's Market Rating: 7.5.

May soybean meal closed down $1.00 at $437.10 Wednesday. Prices closed nearer the session low after hitting another contract high early on. Profit taking was featured today. Bulls still 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 $450.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $420.00. First resistance comes in at $440.00 and then at today’s contract high of $442.80. First support is seen at today’s low of $435.00 and then at $432.50. Wyckoff's Market Rating: 7.5

May bean oil closed down 14 points at 40.52 cents Wednesday. Prices closed near mid-range on mild profit taking from recent gains. Prices early on hit a two-month high today. Recent price action suggests a major market low is in place. Prices are in a steep three-week-old uptrend on the daily bar chart.

The bean oil bulls now have the slight 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 42.00 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 38.75 cents. First resistance is seen at today’s high of 40.74 cents and then at 41.00 cents. First support is seen at today’s low of 40.29 cents and then at 40.15 cents. Wyckoff's Market Rating: 5.5

May Chicago SRW wheat closed up 6 cents at $6.13 1/2 Wednesday. Prices closed near the session high today and hit another fresh seven-week high today. Bulls have gained upside near-term technical momentum recently, to suggest a major market low is in place. But right now the wheat bears still have the slight overall near-term technical advantage.

Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $6.25 a bushel. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $5.85. First resistance is seen at today’s high of $6.14 and then at $6.20. First support lies at today’s low of $6.04 1/4 and then at $6.00. Wyckoff's Market Rating: 4.0.

May HRW wheat closed up 6 3/4 cents at $6.92 1/2 Wednesday. Prices closed near the session high and hit another fresh nine-week high today. Recent price action is a solid clue that a major market low is in place.

The wheat bulls and bears are now on a level near-term technical playing field. 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 $6.60. First resistance is seen at today’s high of $6.93 1/2 and then at $7.00. First support is seen at today’s low of $6.84 3/4 and then at this week’s low of $6.74. Wyckoff's Market Rating: 5.0

May oats closed up the 20-cent limit at $4.13 3/4 Wednesday. Prices hit a fresh contract high today. The bulls have the solid overall near-term technical advantage and gained fresh upside momentum today by pushing prices well above the recent congestion area. 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 this week’s low of $3.88 1/2. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $4.25. First support lies at $4.10 and then at $4.05. First resistance is seen at today’s contract high of $4.13 3/4 and then at $4.20. Wyckoff's Market Rating: 8.5

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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