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Wyckoff's Closing Grains: Corn Closed Lower

11 June 2014
Jim Wyckoff Commentary -  TheCropSite

US - July corn futures closed down 5 3/4 cents at $4.45 1/4 Tuesday.

Prices closed nearer the session low and hit another more-than-four-month low. Very good growing conditions early in the season have the U.S. corn crop looking nice. Weekly USDA crop progress data late Monday was mostly bearish for the grains. The corn bears have the solid overall near-term technical advantage. Prices are in a steep four-week-old downtrend on the daily bar chart. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $4.60. The next downside price breakout objective for the bears is pushing and closing prices below solid support at $4.40. First resistance for July corn is seen at $4.50 and then at today’s high of $4.55. First support is seen at today’s low of $4.44 3/4 and then at $4.40. Wyckoff's Market Rating: 2.0

July soybeans closed up 4 3/4 cents at $14.61 3/4 a bushel Tuesday. Prices closed near mid-range and saw some short covering and a corrective bounce after recent selling pressure. Bean bulls have the slight 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 $14.90 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $14.40. First resistance is seen at today’s high of $14.75 1/4 and then at $14.80. First support is seen at today’s low of $14.54 1/4 and then at $14.50. Wyckoff's Market Rating: 5.5.

July soybean meal closed up $1.60 at $483.80 Tuesday. Prices closed nearer the session low today and saw short covering. The soybean meal bulls still have the overall near-term technical advantage but have faded recently. 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 $485.00 and then at $490.00. First support is seen at this week’s low of $480.00 and then at $475.00. Wyckoff's Market Rating: 6.0

July bean oil closed down 33 points at 38.95 cents Tuesday. Prices closed nearer the session low. The bean oil bears have the firm overall near-term technical advantage. Prices are in a seven-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 40.00 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the contract low of 37.47 cents. First resistance is seen at today’s high of 39.34 cents and then at this week’s high of 39.50 cents. First support is seen at today’s low of 38.80 cents and then at 38.50 cents. Wyckoff's Market Rating: 1.5

July Chicago SRW wheat closed down 11 1/4 cents at $6.01 1/4 Tuesday. Prices closed nearer the session low and hit a 3.5-month low today. The wheat bears have the solid overall near-term technical advantage and gained more power today. Harvest and hedge pressure is now hitting the wheat market as the HRW crop is being harvested in the southern Plains. Prices are in a five-week-old downtrend on the daily bar chart. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at this week’s high of $6.26 1/4. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $5.75. First resistance is seen at $6.10 and then at today’s high of $6.16. First support lies at today’s low of $5.99 1/4 and then at $5.90. Wyckoff's Market Rating: 2.0.

July HRW wheat closed down 7 1/4 cents at $7.26 1/2 Tuesday. Prices closed nearer the session 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 $7.50. The bears' next downside breakout objective is pushing and closing prices below solid technical support at last week’s low of $7.06. First resistance is seen at today’s high of $7.37 1/2 and then at this week’s high of $7.46. First support is seen at today’s low of $7.23 and then at $7.20. Wyckoff's Market Rating: 3.0

July oats closed down up 4 1/2 cents at $3.47 1/2 Tuesday. Prices closed nearer the session high today on short covering and bargain hunting. 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 May 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 $3.48 1/2 and then at $3.50. 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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