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Wyckoff's Closing Grains: Corn Closed Lower

08 May 2014
Jim Wyckoff Commentary -  TheCropSite

US - July corn futures closed down 3 1/2 cents at $5.14 Wednesday.

Prices closed near mid-range today and saw profit taking from recent gains. Traders are now awaiting Friday morning’s monthly USDA supply and demand report. Corn prices are in a four-month-old uptrend on the daily bar chart.

The bulls have the overall near-term technical advantage. Corn bulls' next upside price objective is to push and close prices above strong technical resistance at the April high of $5.24 1/4.

The next downside price breakout objective for the bears is pushing and closing prices below solid support at this week’s low of $4.97 1/2. First resistance for July corn is seen at today’s high of $5.19 and then at last week’s high of $5.22. First support is seen at $5.10 and then at $5.05. Wyckoff's Market Rating: 6.5

July soybeans closed down 13 1/4 cents at $14.46 1/4 a bushel Wednesday. Prices closed nearer the session low today and hit a four-week low. Bulls are fading and are now on a level near-term technical playing field with the bears.

A bearish double-top reversal pattern has formed on the daily bar chart. Recent price action suggests a near-term market top is in place. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at this week’s high of $14.82 1/2 a bushel.

The next downside price breakout objective for the bears is pushing prices below solid technical support at $14.29. First resistance is seen at today’s high of $14.57 1/2 and then at $14.64 3/4. First support is seen at $14.40 and then at $14.29. Wyckoff's Market Rating: 5.0.

July soybean meal closed down $2.60 at $474.90 Wednesday. Prices closed near mid-range and saw more profit taking. The soybean meal bulls still have the overall near-term technical advantage but are fading. Prices are still in a 3.5-month-old uptrend on the daily bar chart but now just barely. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at the contract high of $494.30.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $467.00. First resistance comes in at today’s high of $478.50 and then at $480.00. First support is seen at today’s low of $471.80 and then at $470.00. Wyckoff's Market Rating: 6.5

July bean oil closed down 28 points at 40.83 cents Wednesday. Prices closed nearer the session low and hit a fresh five-week low today. The bean oil bears have the near-term technical advantage and have momentum on their side.

The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at this week’s high of 41.88 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the March low of 40.08 cents. First resistance is seen at 41.00 cents and then at today’s high of 41.38 cents. First support is seen at today’s low of 40.71 cents and then at 40.58 cents. Wyckoff's Market Rating: 3.5

July Chicago SRW wheat closed down 1 1/4 cents at $7.37 3/4 Wednesday. Prices closed nearer the session high today. The wheat bulls have the solid overall near-term technical advantage. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $7.50.

The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $7.10. First resistance is seen at this week’s high of $7.44 and then at $7.50. First support lies at today’s low of $7.27 1/4 and then at this week’s low of $7.21 1/2. Wyckoff's Market Rating: 8.0.

July HRW wheat closed down 4 1/4 cents at $8.41 1/2 Wednesday. Prices closed nearer the session high today. The wheat bulls still have the solid near-term technical advantage. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at the contract high of $8.67.

The bears' next downside breakout objective is pushing and closing prices below solid technical support at $7.94 1/2. First resistance is seen at today’s high of $8.57 1/2 and then at this week’s high of $8.55 1/2. First support is seen at today’s low of $8.28 1/4 and then at this week’s low of $8.22 3/4. Wyckoff's Market Rating: 8.0

July oats closed down 3 1/2 cents at $3.56 Wednesday. Prices closed near mid-range. Bears have the slight near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at the April low of $3.42.

Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at last week’s high of $3.70. First support lies at today’s low of $3.54 and then at $3.50. First resistance is seen at $3.60 and then at $3.65. Wyckoff's Market Rating: 4.5

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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