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Wyckoff's Closing Grains: Corn Lower; Soy Higher

Wyckoff's Closing Grains: Corn Lower; Soy Higher

29 May 2014
Jim Wyckoff Commentary -  TheCropSite

ANALYSIS - July corn futures closed up 3 1/4 cents at $4.73 Wednesday, writes analyst Jim Wyckoff for TheCropSite.

Prices closed near the session high on short covering after hitting a nearly three-month low early on today. The corn bears still have the overall near-term technical advantage. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at last week’s high of $4.82 1/2.

The next downside price breakout objective for the bears is pushing and closing prices below solid support at $4.60. First resistance for July corn is seen at $4.75 and then at $4.78. First support is seen at $4.70 and then at today’s low of $4.66 1/2. Wyckoff's Market Rating: 3.5

July soybeans closed up 8 3/4 cents at $14.97 1/2 a bushel Wednesday. Prices closed nearer the session high today on some fresh demand for U.S. soybeans from China. Good soybean planting progress in the U.S. the past few days is still a bearish weight for beans. Bean bulls have the solid overall near-term technical advantage.

The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at last week’s high of $15.36 3/4 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 $15.02 and then at this week’s high of $15.15 1/2. First support is seen at today’s low of $14.82 3/4 and then at $14.75. Wyckoff's Market Rating: 7.5.

July soybean meal closed up $3.60 at $497.80 Wednesday. Prices closed nearer the session 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 last week’s contract high of $508.00.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at last week’s low of $477.40. First resistance comes in at $500.00 and then at this week’s high of $502.60. First support is seen at today’s low of $492.70 and then at $490.00. Wyckoff's Market Rating: 7.5

July bean oil closed down 31 points at 39.63 cents Wednesday. Prices closed near the session low and hit a fresh nearly four-month low today. The bean oil bears have the firm overall near-term technical advantage. Prices are in a six-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 39.00 cents. First resistance is seen at 40.00 cents and then at today’s high of 40.33 cents. First support is seen at today’s low of 39.50 cents and then at 39.25 cents. Wyckoff's Market Rating: 2.5

July Chicago SRW wheat closed down 2 1/4 cents at $6.38 3/4 Wednesday. Prices closed nearer the session high and hit a nearly three-month low today. Good rainfall amounts in the HRW wheat regions the past few days will boost the crop prospects in those regions. The wheat bears have the firm overall near-term technical advantage. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $6.75.

The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $6.25. First resistance is seen at this week’s high of $6.48 1/2 and then at $6.63 3/4. First support lies at today’s low of $6.33 and then at $6.25. Wyckoff's Market Rating: 3.0.

July HRW wheat closed down 2 1/4 cents at $7.36 Wednesday. Prices closed nearer the session high and hit a six-week low today. The wheat bears have the near-term technical advantage. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at last week’s high of $7.85 3/4.

The bears' next downside breakout objective is pushing and closing prices below solid technical support at the April low of $7.23 1/4. First resistance is seen at this week’s high of $7.47 and then at $7.55. First support is seen at today’s low of $7.29 1/4 and then at $7.25. Wyckoff's Market Rating: 3.5

July oats closed up 10 cents at $3.49 3/4 Wednesday. Prices closed nearer the session high on short covering. Bears still have the near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at last week’s low of $3.26 1/2.

Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.60. First support lies at $3.45 and then at $3.40. First resistance is seen at today’s high of $3.50 3/4 and then at $3.55. Wyckoff's Market Rating: 4.0

Livestock

August live cattle closed up $0.35 at $137.10 Wednesday. Prices closed near mid-range today. The bulls still have the overall near-term technical advantage, but have faded recently, to begin to suggest a near-term market top is in place. Bulls’ next upside price objective is to push and close prices above solid resistance at $138.75.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $135.75. First resistance is seen at today’s high of $137.42 and then at $138.00. First support is seen at this week’s low of $136.50 and then at $136.00. Wyckoff's Market Rating: 6.5

August feeder cattle closed up $2.07 at $195.57 Wednesday. Prices closed nearer the session high. 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 feeder bulls is to push and close prices above solid technical resistance at the contract high of $197.75.

The next downside price breakout objective for the bears is to push and close prices below solid technical support at $192.82. First resistance is seen at $196.00 and then at $197.00. First support is seen at $195.00 and then at $194.00. Wyckoff's Market Rating: 8.0

August lean hogs closed down $2.02 at $124.77 Wednesday. Prices did close near the session high and hit a two-week low today. The bulls still have the overall near-term technical advantage. However, today’s strong losses did negate a seven-week-old uptrend line on the daily bar chart. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at the contract high of $128.75.

The next downside price breakout objective for the bears is pushing prices below solid technical support at $122.00. First resistance is seen at today’s high of $125.00 and then at $126.00. First support is seen at today’s low of $123.80 and then at $123.00. Wyckoff's Market Rating: 6.5

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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