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Wyckoff's Closing Grains: Corn Closed Higher

Wyckoff's Closing Grains: Corn Closed Higher

29 July 2014
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed up 5 1/4 cents at $3.77 Monday. Prices closed nearer the session high on short covering.

The corn market bears are still in overall technical control, but a market bottom may be forming, what with value-buying from commercials occurring at these lower price levels. Corn Belt weather forecasts and growing conditions remain overall bearish.

A steep price downtrend remains in place on the daily bar chart. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $3.87. The next downside price breakout objective for the bears is pushing and closing prices below solid support at last week’s contract low of $3.64 1/4.

First resistance for December corn is seen at today’s high of $3.77 3/4 and then at $3.83. First support is seen at today’s low of $3.72 and then at $3.70. Wyckoff's Market Rating: 2.0

November soybeans closed up 24 3/4 cents at $11.08 a bushel Monday. Prices closed nearer the session high and saw good short covering and bargain hunting. Commercial buying interest at lower price levels was also featured today. The soybean bears still have the overall near-term technical advantage.

However the bulls are making a move to suggest a market bottom is in place. Corn Belt weather forecasts and growing conditions are bearish at present. However, traders are watching a drier pattern developing in the region.

The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $11.18 3/4 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $10.75. First resistance is seen at today’s high of $11.10 and then at $11.18 3/4. First support is seen at $11.00 and then at today’s low of $10.90 1/4. Wyckoff's Market Rating: 3.0.

December soybean meal closed up $6.60 at $356.80 Monday. Prices closed nearer the session high today and saw more short covering and bargain hunting. The soybean meal bears still have the overall near-term technical advantage.

However, it now looks like a market bottom is in place. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at the July high of $367.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $345.00.

First resistance comes in at last week’s high of $358.50 and then at $360.00. First support is seen at $354.00 and then at today’s low of $352.20. Wyckoff's Market Rating: 3.0

December bean oil closed up 56 points at 36.81 cents Monday. Prices closed nearer the session high and saw more short covering after hitting a contract low last week. The bean oil bears still have the firm 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 37.31 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 35.50 cents.

First resistance is seen at today’s high of 36.92 cents and then at 37.00 cents. First support is seen at 36.50 cents and then at today’s low of 36.24 cents. Wyckoff's Market Rating: 2.0

December Chicago SRW wheat closed down 1 1/4 cents at $5.58 1/2 Monday. Prices closed near mid-range. The wheat bears have the solid overall near-term technical advantage. Wheat will continue to generally follow the lead of corn and soybeans in the coming weeks. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $5.84 1/2. 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 $5.64 and then at $5.75. First support lies at today’s low of $5.54 and then at $5.50. Wyckoff's Market Rating: 1.5.

December HRW wheat closed down 5 3/4 cents at $6.39 1/2 Monday. Prices closed near the session low. The wheat bears have the solid overall near-term technical advantage. Prices are in an 11-week-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at $6.69 3/4. The bears' next downside breakout objective is pushing and closing prices below solid technical support at the January low of $6.22. First resistance is seen at today’s high of $6.50 and then at $6.58. First support is seen at last week’s low of $6.31 3/4 and then at $6.25. Wyckoff's Market Rating: 1.5

December oats closed up 5 1/2 cents at $3.38 Monday. Prices closed near the session high. Bulls have regained the near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at $3.25. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at the June high of $3.43 1/4. First support lies at today’s low of $3.33 1/2 and then at $3.30. First resistance is seen at today’s high of $3.38 and then at $3.40. Wyckoff's Market Rating: 6.0

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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