TheCropSite.com- news, features, articles and disease information for the crop industry

News

Wyckoff's Closing Grains: Corn Closed Lower

Wyckoff's Closing Grains: Corn Closed Lower

09 July 2014
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed down 3 cents at $4.03 1/4 Tuesday. Prices hit another contract low today and closed nearer the session low.

Monday’s gap lower could be an “exhaustion gap,” meaning a final phase of the present downtrend. But right now the corn bears have the strong overall near-term technical advantage. However, the market is still way short-term oversold and at least a corrective bounce is due very soon.

Fundamentally, very good growing conditions in most of the U.S. Corn Belt is bearish. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $4.14 1/2, which is the top of Monday’s downside price gap on the daily chart.

The next downside price breakout objective for the bears is pushing and closing prices below major support at $4.00. First resistance for December corn is seen at today’s high of $4.08 and then at Monday’s high of $4.10 1/2. First support is seen at today’s contract low of $4.02 3/4 and then at $4.00. Wyckoff's Market Rating: 1.0

November soybeans closed down 9 1/2 cents at $11.16 a bushel Tuesday. Prices closed near the session low and hit a five-month low today. The bears have the solid overall near-term technical advantage, and reaffirmed such with today’s low-range close. The market is still well oversold and due for a corrective bounce very soon. Weather in the Corn Belt remains the major bearish fundamental in this market.

The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $11.32 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $11.00. First resistance is seen at $11.25 and then at today’s high of $11.29 1/2. First support is seen at today’s low of $11.15 and then at $11.10. Wyckoff's Market Rating: 1.5.

December soybean meal closed down $1.20 at $357.50 Tuesday. Prices closed nearer the session low today and closed at a 4.5-month low close. The soybean meal bears have the solid near-term technical advantage.

The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at $367.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $350.00. First resistance comes in at $360.00 and then at $362.50. First support is seen at today’s low of $356.00 and then at Monday’s low of $354.30. Wyckoff's Market Rating: 2.0

December bean oil closed down 52 points at 37.98 cents Tuesday. Prices closed near the session low and hit a five-month low today. The bean oil bears have the solid overall near-term technical advantage.

The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at 39.00 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the January low of 37.72 cents. First resistance is seen at 38.29 cents and then at 38.50 cents. First support is seen at today’s low of 37.91 cents and then at 37.72 cents. Wyckoff's Market Rating: 1.0

December Chicago SRW wheat closed up 1/2 cent at $5.81 Tuesday. Prices closed nearer the session low and hit another 5.5-month low today. Good harvest pressure and the big sell offs in corn and soybeans have hit the wheat market hard to the downside. 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 $6.00. 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 $5.90 and then at $5.95. First support lies at today’s low of $5.79 1/4 and then at $5.77 3/4. Wyckoff's Market Rating: 1.0.

December HRW wheat closed down 5 cents at $6.75 Tuesday. Prices closed near the session low and hit a 4.5-month low 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 $7.20. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $6.50. First resistance is seen at today’s high of $6.84 1/4 and then at $6.90. First support is seen at today’s low of $6.74 1/2 and then at $6.70. Wyckoff's Market Rating: 2.0

December oats closed up 1 1/2 cents at $3.40 1/4 Tuesday. Prices closed near mid-range. Bulls have the near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at last week’s low of $3.20. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at last week’s high of $3.51.

First support lies at $3.35 and then at today’s low of $3.33. First resistance is seen at $3.45 and then at today’s high of $3.48 1/4. 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.



Our Sponsors

Partners


Seasonal Picks

Country Dance