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Wyckoff's Closing Grains: Corn Closed Lower

20 May 2014
Jim Wyckoff Commentary -  TheCropSite

US - July corn futures closed down 6 1/2 cents at $4.77 Monday.

Prices closed nearer the session low today and hit a 2.5-month low. A good window for corn planting in the U.S. Midwest is a bearish underlying factor for the corn market. The bears have the overall near-term technical advantage and have solid downside momentum on their side. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $4.90. The next downside price breakout objective for the bears is pushing and closing prices below solid support at $4.68. First resistance for July corn is seen at $4.80 and then at today’s high of $4.82 1/2. First support is seen at today’s low of $4.76 1/4 and then at $4.75. Wyckoff's Market Rating: 3.5

July soybeans closed up 16 1/4 cents at $14.83 1/4 a bushel Monday. Prices closed nearer the session high and scored a bullish “outside day” up on the daily bar chart. Tight domestic stocks and some recent good export demand are bullish factors for soybeans. Bean bulls have the near-term technical advantage amid choppy recent trading. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $15.00 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at the May low of $14.41 3/4. First resistance is seen at today’s high of $14.92 3/4 and then at $14.96. First support is seen at $14.75 and then at $14.70. Wyckoff's Market Rating: 7.0.

July soybean meal closed up $9.00 at $489.20 Monday. Prices closed nearer the session high and hit a fresh contract high today. The soybean meal bulls have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at $500.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at the May low of $471.00. First resistance comes in at today’s contract high of $494.90 and then at $500.00. First support is seen at $485.00 and then at $482.50. Wyckoff's Market Rating: 8.0

July bean oil closed down 29 points at 40.46 cents Monday. Prices closed nearer the session low and hit a six-week low today. The bean oil bears have the overall near-term technical advantage and gained more downside momentum today. The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at last 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 today’s high of 40.79 and then at 41.00 cents. First support is seen at today’s low of 40.31 cents and then at 40.08 cents. Wyckoff's Market Rating: 3.5

July Chicago SRW wheat closed up 1 1/4 cents at $6.75 1/2 Monday. Prices closed nearer the session high on tepid short covering after hitting a nine-week low early on. The bulls have lost their overall near-term technical advantage. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $6.90. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $6.50. First resistance is seen at $6.80 and then at $6.85. First support lies at $6.70 and then at today’s low of $6.62 3/4. Wyckoff's Market Rating: 5.0.

July HRW wheat closed up 2 1/4 cents at $7.70 Monday. Prices closed near the session high and saw tepid short covering after hitting a four-week low early on. The wheat bulls have lost their near-term technical advantage. 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 $7.75 and then at $7.80. First support is seen at today’s low of $7.59 and then at $7.50. Wyckoff's Market Rating: 5.0

July oats closed down 3 1/2 cents at $3.33 1/2 Monday. Prices closed nearer the session high but hit a fresh four-month low early on today. Bears have the solid near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at the January low of $3.11. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.50. First support lies at $3.30 and then at today’s low of $3.26 1/2. First resistance is seen at today’s high of $3.37 and then at $3.40. Wyckoff's Market Rating: 2.5

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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