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Wyckoff's Closing Grains: Corn Futures Close Down 22 Cents

01 July 2014
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed down 22 cents at $4.25 1/4 Monday.

Prices closed nearer the session low, hit a fresh contract low and closed at a bearish monthly and quarterly low close. A bearish USDA report today that showed hefty corn stockpiles sunk the corn market. Generally good growing and crop conditions in the U.S. Corn Belt also are bearish despite some heavy rains that have hurt portions of the crop. The corn bears have the strong overall near-term technical advantage. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $4.37. The next downside price breakout objective for the bears is pushing and closing prices below solid support at $4.15. First resistance for December corn is seen at $4.30 and then at $4.35. First support is seen at today’s contract low of $3.23 1/2 and then at $4.20. Wyckoff's Market Rating: 1.0

November soybeans closed down 70 3/4 cents at $11.57 1/4 a bushel Monday. Prices closed nearer the session low, hit a four-month low and closed at a bearish monthly and quarterly low close today. A very bearish USDA report sunk the soybean market today. Today’s price action confirmed a big and bearish head-and-shoulders top reversal pattern on the daily bar chart. Bears have quickly gained the 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 $12.00 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $11.30. First resistance is seen at $11.65 1/2 and then at $11.75. First support is seen at today’s low of $11.51 1/2 and then at $11.47. Wyckoff's Market Rating: 3.5.

December soybean meal closed down $25.60 at $367.40 Monday. Prices closed nearer the session low today and hit a 3.5-month low. Prices also closed at a bearish monthly and quarterly low close. The soybean meal bears have the firm near-term technical advantage. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at $387.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at the March low of $355.10. First resistance comes in at $370.00 and then at $375.00. First support is seen at $365.00 and then at today’s low of $363.50. Wyckoff's Market Rating: 3.0

December bean oil closed down 124 points at 39.15 cents Monday. Prices closed nearer the session low. The bean oil bears have gained the overall near-term technical advantage. A three-week-old uptrend on the daily bar chart has been soundly negated. The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at 40.50 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the June low of 38.29 cents. First resistance is seen at 39.25 cents and then at 39.50 cents. First support is seen at today’s low of 39.06 cents and then at 39.00 cents. Wyckoff's Market Rating: 3.0

December Chicago SRW wheat closed down 14 1/2 cents at $5.98 1/2 Monday. Prices closed nearer the session low and hit a five-month low today. Prices also closed at a bearish monthly and quarterly low close today. Wheat followed the corn and soybean market lower today. The USDA data for wheat was basically neutral. The wheat bears have the solid overall near-term technical advantage. Prices are in a steep two-month-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 $6.20. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at the January low of $5.77 3/4. First resistance is seen at $6.00 and then at today’s high of $6.11 1/4. First support lies at today’s low of $5.89 and then at $5.85. Wyckoff's Market Rating: 1.0.

December HRW wheat closed down 20 cents at $7.06 1/2 Monday. Prices closed near the session low, hit a four-month low and closed at a bearish monthly and quarterly low close today. The wheat bears have the solid overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at $7.30. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $7.00. First resistance is seen at $7.15 and then at $7.20. First support is seen at today’s low of $7.06 and then at $7.00. Wyckoff's Market Rating: 2.0

December oats closed down 4 3/4 cents at $3.24 Monday. Prices closed nearer the session low and hit a three-week low today. Bears gained the slight near-term technical advantage today. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at the June low of $3.16. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.35. First support lies at today’s low of $3.21 1/2 and then at $3.20. First resistance is seen at $3.25 and then at $3.28. 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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