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Wyckoff's Closing Grains: Corn Closes Lower

27 February 2014
Jim Wyckoff Commentary -  TheCropSite

US - May corn futures closed down 1/4 cent at $4.61 Wednesday.

Prices closed nearer the session low after hitting a four-month high early on today. Corn prices are in a seven-week-old uptrend on the daily bar chart. Corn bulls and bears are on a level near-term technical playing field, but the bulls still have some momentum on their side. 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 $4.50. First resistance for March corn is seen at today’s high of $4.65 and then at $4.70. First support is seen at $4.55 and then at this week’s low of $4.52. Wyckoff's Market Rating: 5.0

May soybeans closed up 9 3/4 cents at $13.97 a bushel Wednesday. Prices closed near the session high and hit another fresh contract high today. Soybean bulls have the solid overall near-term technical advantage. However, the market is still short-term overbought, technically, and due for a decent downside correction very soon. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $14.00 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at this week’s low of $13.58 1/4. First resistance is seen at today’s contract high of $13.97 3/4 and then at $14.00. First support is seen at today’s low of $13.81 1/4 and then at $13.75. Wyckoff's Market Rating: 8.5.

May soybean meal closed steady at $453.70 Wednesday. Prices closed nearer the session high and hit another contract high. Bulls have the solid near-term technical advantage. However, this market is also short-term overbought. 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 $454.80 and then at $457.50. First support is seen at today’s low of $449.10 and then at $444.80. Wyckoff's Market Rating: 8.0

May bean oil closed up 61 points at 41.46 cents Wednesday. Prices closed nearer the session high and hit a 10-week high. Prices also scored a bullish “outside day up on the daily bar chart today and are in a steep four-week-old uptrend on the daily bar chart. The bean oil bulls 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 42.50 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 40.00 cents. First resistance is seen at today’s high of 41.64 cents and then at 42.00 cents. First support is seen at 41.00 cents and then at today’s low of 40.65 cents. Wyckoff's Market Rating: 6.0

May Chicago SRW wheat closed down 12 1/2 cents at $6.05 1/2 Wednesday. Prices closed near the session low today on profit taking. Prices Tuesday hit a two-month high. 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 $6.50 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 $6.15 and then at this week’s high of $6.20. First support lies at $6.00 and then at $5.95. Wyckoff's Market Rating: 4.5.

May HRW wheat closed down 11 cents at $6.80 Wednesday. Prices closed nearer the session low on profit taking today. Recent price action is a solid clue that a major market low is in place. The wheat bulls and bears are 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 $6.50. First resistance is seen at this week’s high of $6.91 3/4 and then at $7.00. First support is seen at today’s low of $6.78 1/2 and then at this week’s low of $6.69 3/4. Wyckoff's Market Rating: 5.0

May oats closed down 7 1/2 cents at $4.60 3/4 Wednesday. Prices hit another fresh contract high today but then backed way off to score a bearish “key reversal” down on the daily bar chart, which is a technical clue that a market top is now in place. This market has gone parabolic, which also suggests a top is close at hand. The bulls still have the overall near-term technical advantage. Prices are in an accelerating four-month-old uptrend on the daily bar chart. Would-be top pickers still do not want to stand in front of this steaming locomotive. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at $4.25. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at today’s contract high of $4.98. First support lies at $4.50 and then at today’s low of $4.44 1/2. First resistance is seen at $4.68 1/4 and then at $4.75. 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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