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Wyckoff's Closing Grains: Corn Closed Lower

15 July 2014
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed up 3 1/2 cents at $3.88 1/4 Monday. Prices hit another contract low today and then rebounded to close nearer the session high on tepid short covering in a bear market.

While the corn bears still have the strong overall near-term technical advantage, the psychology of the corn market traders is extremely bearish at present. That hints a near-term market low could be close at hand. Also, the market is still short-term oversold. Corn Belt weather forecasts and growing conditions are still fully bearish as the calendar hits mid-July. Corn bulls' next upside price objective is to push and close prices above major technical resistance at $4.00. The next downside price breakout objective for the bears is pushing and closing prices below solid support at $3.75. First resistance for December corn is seen at $3.95 and then at $4.00. First support is seen at today’s contract low of $3.80 1/4 and then at $3.75. Wyckoff's Market Rating: 1.0

November soybeans closed up 11 1/4 cents at $10.86 1/4 a bushel Monday. Prices closed nearer the session high on short covering in a bear market. Prices Friday hit a five-month low. While the soybean bears still have the strong overall near-term technical advantage, the psychology of traders is extremely bearish at present. That hints a near-term market low could be close at hand. Also, the market is still short-term oversold. Corn Belt weather forecasts and growing conditions are still fully bearish as the calendar hits mid-July. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $11.00 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $10.50. First resistance is seen at today’s high of $10.91 and then at $11.00. First support is seen at $10.75 and then at today’s low of $10.68 3/4. Wyckoff's Market Rating: 1.5.

December soybean meal closed up $3.70 at $348.70 Monday. Prices closed nearer the session high today on short covering after hitting a five-month low Friday. The soybean meal bears still 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 last week’s high of $360.80. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $335.00. First resistance comes in at today’s high of $351.10 and then at $353.80. First support is seen at $345.00 and then at today’s low of $342.80. Wyckoff's Market Rating: 1.5

December bean oil closed up 14 points at 37.10 cents Monday. Prices closed nearer the session high on short covering after hitting a contract low Friday. The bean oil bears still 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 last week’s high of 38.67 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 36.00 cents. First resistance is seen at 37.25 cents and then at 37.50 cents. First support is seen at today’s low of 36.68 cents and then at the contract low of 36.59 cents. Wyckoff's Market Rating: 1.5

December Chicago SRW wheat closed up 12 3/4 cents at $5.60 1/2 Monday. Prices closed nearer the session high on short covering after hitting another contract low early on today. This market is still oversold, technically, at present. The wheat bears have the solid overall near-term technical advantage. Prices are in a steep nine-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 $5.90. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $5.25. First resistance is seen at $5.70 and then at $5.75. First support lies at today’s contract low of $5.46 1/2 and then at $5.40. Wyckoff's Market Rating: 1.0.

December HRW wheat closed up 9 3/4 cents at $6.56 1/2 Monday. Prices closed near the session high on short covering. Prices Friday hit a five-month low. The wheat bears have the solid overall near-term technical advantage. Prices are in a nine-week-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at $6.80. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $6.50. First resistance is seen at $6.65 and then at $6.74. First support is seen at $6.50 and then at last week’s low of $6.43 1/4. Wyckoff's Market Rating: 1.5

December oats closed up 6 cents at $3.32 1/2 Monday. Prices closed near the session high and scored a bullish “outside day” up on the daily bar chart. Bulls have the slight near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at the July low of $3.20. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at the July high of $3.51. First support lies at $3.30 and then at $3.27. First resistance is seen at today’s high of $3.33 1/2 and then at $3.35 1/2. Wyckoff's Market Rating: 5.5

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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