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Wyckoff's Closing Grains: Corn Closed Higher

17 July 2014
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed up 4 cents at $3.85 3/4 Wednesday.

Prices closed nearer the session low on short covering in a bear market. Prices Tuesday hit a contract low. This major bear market rolls on, amid talk of a huge U.S. corn crop in the ground. Corn Belt weather forecasts and growing conditions have been fully bearish as the calendar hits mid-July. Some warmer and drier air is in the forecast for next week, which bears close watching.
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 $3.90 and then at today’s high of $3.93 3/4. First support is seen at today’s low of $3.81 3/4 and then at the contract low of $3.78 1/4. Wyckoff's Market Rating: 1.5

November soybeans closed up 17 cents at $11.03 1/4 a bushel Wednesday. Prices closed nearer the session high as more short covering was featured. While the soybean bears still have the solid overall near-term technical advantage, they may have become exhausted. Corn Belt weather forecasts and growing conditions are still fully bearish as the calendar hits mid-July. But drier and warmer is in the forecast for next week. However, a serious dry weather pattern would have to persist to really rally this market. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $11.25 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at last week’s low of $10.65. First resistance is seen at today’s high of $11.07 3/4 and then at $11.18. First support is seen at today’s low of $10.85 3/4 and then at Tuesday’s low of $10.70. Wyckoff's Market Rating: 2.5.

December soybean meal closed up $10.20 at $357.40 Wednesday. Prices closed near the session high today on short covering and bargain hunting. The soybean meal bears have the 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 last week’s low of $340.00. First resistance comes in at $360.80 and then at $363.00. First support is seen at $355.00 and then at $350.00. Wyckoff's Market Rating: 2.5

December bean oil closed down 9 points at 37.02 cents Wednesday. Prices closed nearer the session low in quieter trading. 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 today’s high of 37.31 cents and then at 37.50 cents. First support is seen at today’s low of 36.90 cents and then at Tuesday’s contract low of 36.52 cents. Wyckoff's Market Rating: 1.5

December Chicago SRW wheat closed up 1/2 cent at $5.61 1/2 Wednesday. Prices closed nearer the session low. 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 today’s high of $5.67 3/4 and then at $5.75. First support lies at $5.53 1/2 and then at the contract low of $5.46 1/2. Wyckoff's Market Rating: 1.0.

December HRW wheat closed down 3/4 cent at $6.48 3/4 Wednesday. Prices closed nearer the session 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 today’s high of $6.55 1/4 and then at $6.60. First support is seen at the contract low of $6.43 1/4 and then at $6.35. Wyckoff's Market Rating: 1.0

December oats closed up 4 1/2 cents at $3.35 1/2 Wednesday. Prices closed near the session high. 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 today’s low of $3.31 1/4 and then at $3.27 3/4. First resistance is seen at today’s high of $3.35 1/2 and then at $3.38. 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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