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Wyckoff's Closing Grains: Corn Closed Higher

20 June 2014
Jim Wyckoff Commentary -  TheCropSite

US - July Corn closed up 9-cents at 4.50 1/2. July corn closed higher due to short covering on Thursday.

Ethanol production soared to an all-time high last week, reaching 972,000 barrels a day, while stocks fell 572,000 barrels thanks to demand supported by exports and high gasoline costs. However, the big production number pushed ethanol prices to a two-month low.

The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI are oversold but are turning neutral to bullish hinting that a low might be in or is near. Closes above the 20-day moving average crossing at 4.56 are needed to confirm that a low has been posted.

If July extends the decline off May's high, January's low crossing at 4.21 3/4 is the next downside target. First resistance is the 20-day moving average crossing at 4.56. Second resistance is the reaction high crossing at 4.73 1/2. First support is Tuesday's low crossing at 4.35 1/2. Second support is January's low crossing at 4.21 3/4.

July wheat closed up 6 1/2-cents at 5.93 1/2. July wheat closed higher due to short covering on Thursday. The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI are turning neutral to bullish hinting that a low might be in or is near. Closes above the 20-day moving average crossing at 6.12 would confirm that a short-term low has been posted.

If July extends the decline off May's high, January's low crossing at 5.57 1/4 is the next downside target. First resistance is the 10-day moving average crossing at 5.93 1/2. Second resistance is the 20-day moving average crossing at 6.12. First support is Tuesday's low crossing at 5.76 3/4. Second support is January's low crossing at 5.57 1/4.

July Kansas City Wheat closed up 1 1/2-cents at 7.29 1/4. July Kansas City wheat closed higher due to short covering on Thursday. Today's high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If July extends this week's rally, last Friday's high crossing at 7.36 is the next upside target.

If July renews the decline off May's high, the 62% retracement level of this year's rally crossing at 6.95 is the next downside target. First resistance is today's high crossing at 7.29 1/4. Second resistance is last Friday's high crossing at 7.36. First support is last Wednesday's low crossing at 7.04 1/4. Second support is the 62% retracement level of this year's rally crossing at 6.95.

SOYBEAN COMPLEX

July soybeans closed up 11 3/4-cents at 14.20 3/4. July soybeans closed higher due to short covering on Thursday as they consolidate some of the decline off May's high. The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term.

If July extends the decline off May's high, the 50% retracement level of this year's rally crossing at 13.84 3/4 is the next downside target. Closes above the 20-day moving average crossing at 14.62 1/2 would confirm that a low has been posted. First resistance is the 10-day moving average crossing at 14.31 1/4. Second resistance is the 20-day moving average crossing at 14.62 1/2. First support is Wednesday's low crossing at 13.93 1/2. Second support is the 50% retracement level of this year's rally crossing at 13.84 3/4.

July soybean meal closed down $2.00 at 451.20. July soybean meal closed lower on Thursday. The low-range close sets the stage for a steady to lower opening when Friday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term.

If July extends the aforementioned decline, the 38% retracement of this year's rally crossing at 435.50 is the next downside target. Closes above the 20-day moving average crossing at 484.00 would confirm that a low has been posted. First resistance is the 10-day moving average crossing at 469.10. Second resistance is the 20-day moving average crossing at 484.00. First support is Wednesday's low cossing at 448.60. Second support is the 38% retracement of this year's rally crossing at 435.50.

July soybean oil closed up 48-pts. At 40.61. July soybean oil closed higher on Thursday as it extends this month's rally. The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher pricdes are possible near-term. If July extends this month's rally, the reaction high crossing at 41.39 is the next upside target.

Closes below the 20-day moving average crossing at 39.36 would confirm that a short-term top has been posted. First resistance is today's high crossing at 40.70. Second resistance is the reaction high crossing at 41.39. First support is last Wednesday's low crossing at 38.29. Second support is this month's low crossing at 37.76.

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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