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Wyckoff's Closing Grains: Corn Closed Lower

27 March 2014
Jim Wyckoff Commentary -  TheCropSite

US - May corn futures closed down 1 3/4 cents at $4.84 3/4 Wednesday.

Prices closed near mid-range and saw more mild profit taking. Corn prices are still in a 2.5-month-old uptrend on the daily bar chart. Corn bulls have the overall near-term technical advantage. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at the March high of $5.02 1/2.

The next downside price breakout objective for the bears is pushing and closing prices below solid support at $4.76. First resistance for May corn is seen at last week’s high of $4.91 3/4 and then at $4.93 1/4. First support is seen at today’s low of $4.82 1/2 and then at $4.80. Wyckoff's Market Rating: 6.0

May soybeans closed up 12 1/4 cents at $14.40 1/4 a bushel Wednesday. Prices closed nearer the session high and closed at a three-week high close. The soybean bulls have the solid overall near-term technical advantage. However, the choppy and volatile price action at higher levels is an early warning signal this market has put in a near-term top.

Traders are awaiting next Monday’s USDA planting intentions report, which is one of the most important USDA reports of the year. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at the March high of $14.60 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at this week’s low of $13.93 1/4. First resistance is seen at $14.45 1/2 and then at $14.50. First support is seen at $14.30 and then at today’s low of $14.20 3/4. Wyckoff's Market Rating: 7.5.

May soybean meal closed up $4.90 at $468.60 Wednesday. Prices closed near the session high and closed at a fresh contract high close today. Bulls have the solid overall near-term technical advantage. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at the contract high of $472.90.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $450.00. First resistance comes in at today’s high of $469.80 and then at $472.90. First support is seen at $465.00 and then at today’s low of $461.00. Wyckoff's Market Rating: 8.0

May bean oil closed up 7 points at 40.81 cents Wednesday. Prices closed near mid-range and hit a fresh five-week low early on today. Tepid short covering in a bear market was featured. The bean oil bears still have the overall near-term technical advantage. Prices are in a steep three-week-old downtrend.

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 40.00 cents. First resistance is seen at today’s high of 41.05 cents and then at this week’s high of 41.31 cents. First support is seen at today’s low of 40.57 cents and then at 40.25 cents. Wyckoff's Market Rating: 3.0

May Chicago SRW wheat closed down 10 1/2 cents at $6.97 3/4 Wednesday. Prices closed nearer the session low today and saw more profit taking from recent strong gains. Deteriorating growing conditions for the U.S. hard red winter crop are still bullish for all wheat futures. The wheat bulls still have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart.

Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $7.50 a bushel. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at last week’s low of $6.71 3/4. First resistance is seen at today’s high of $7.11 3/4 and then at this week’s high of $7.18 1/4. First support lies at today’s low of $6.94 3/4 and then at this week’s low of $6.87. Wyckoff's Market Rating: 6.5.

May HRW wheat closed down 20 1/2 cents at $7.71 1/4 Wednesday. Prices closed nearer the session low today on profit taking from recent gains. The wheat bulls still have the overall technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at $8.00. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $7.50. First resistance is seen at $7.80 and then at $7.85. First support is seen at this week’s low of $7.68 and then at $7.60. Wyckoff's Market Rating: 6.5

May oats closed up 2 1/4 cents at $4.04 1/2 Wednesday. Prices hit a six-week low early on today. Bears have the near-term technical advantage. A three-week-old downtrend is in place 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 $4.30. First support lies at $4.00 and then at $3.95. First resistance is seen at today’s high of $4.07 3/4 and then at $4.10. Wyckoff's Market Rating: 4.0

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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