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Wyckoff's Closing Grains: Corn Closed Steady

22 May 2014
Jim Wyckoff Commentary -  TheCropSite

GLOBAL - July corn futures closed steady at $4.73 1/2 Wednesday.

Prices closed nearer the session low today and hit another 2.5-month low. The firmer U.S. dollar index today limited buying interest in corn. The bears have the overall near-term technical advantage and still have downside momentum. However, the corn market is now oversold on a short-term technical basis and due for a corrective bounce soon. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $4.87. 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 today’s high of $4.76 and then at this week’s high of $4.82 1/2. First support is seen at today’s low of $4.72 1/2 and then at $4.70. Wyckoff's Market Rating: 3.0

July soybeans closed up 37 1/4 cents at $15.07 a bushel Wednesday. Prices closed near the session high and hit a fresh three-week high today. Bean bulls have the solid near-term technical advantage and gained more power today. 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 $15.21 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at this week’s low of $14.56 1/4. First resistance is seen at today’s high of $15.07 3/4 and then at $15.21. First support is seen at $15.00 and then at $14.90. Wyckoff's Market Rating: 8.0.

July soybean meal closed up $11.50 at $498.20 Wednesday. Prices closed near the session high today and closed at a fresh contract high close. 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 this week’s low of $477.40. First resistance comes in at the contract high of $499.10 and then at $500.00. First support is seen at $495.00 and then at $490.00. Wyckoff's Market Rating: 8.0

July bean oil closed up 40 points at 40.47 cents Wednesday. Prices closed near the session high after hitting a 3.5-month low early on today. Short covering in a bear market was featured. The bean oil bears still have the solid overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at 41.00 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 39.50 cents. First resistance is seen at 40.62 and then at this week’s high of 40.79 cents. First support is seen at 40.25 cents and then at 40.00 cents. Wyckoff's Market Rating: 3.5

July Chicago SRW wheat closed down 7 cents at $6.63 1/2 Wednesday. Prices closed near the session low and closed at a 2.5-month low close today. The firmer U.S. dollar index was a bearish underlying factor for the wheat market today. The wheat bears 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 this week’s high of $6.86. 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 $6.70 and then at today’s high of $6.75 1/2. First support lies at this week’s low of $6.62 3/4 and then at $6.50. Wyckoff's Market Rating: 4.5.

July HRW wheat closed down 7 cents at $7.61 1/4 Wednesday. Prices closed nearer the session low and closed at a four-week low close today. The wheat bulls and bears are on a level near-term technical playing field, but the bulls are fading. 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 today’s high of $7.72 and then at this week’s high of $7.85 3/4. First support is seen at this week’s low of $7.59 and then at $7.50. Wyckoff's Market Rating: 5.0

July oats closed up 6 1/4 cents at $3.40 1/2 Wednesday. Prices closed nearer the session high and saw more short covering in a bear market. Bears still 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 $3.37 and then at today’s low of $3.34 1/4. First resistance is seen at today’s high of $3.41 3/4 and then at $3.45. 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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