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Wyckoff's Closing Grains: Corn Closed Higher

Wyckoff's Closing Grains: Corn Closed Higher

05 August 2014
Jim Wyckoff Commentary -  TheCropSite

US - December Corn closed up 7-cents at 3.69 1/4. December corn closed higher due to short covering on Monday as it consolidated some of this summer's decline.

With much of the upper Midwest needing a rain this week to relieve growing moisture stress in both corn and soybeans in the region. Extended weather forecast project lower chances for rain across the Upper Midwest than was forecasted last Friday.

This shift in the weather forecast was enough to trigger and support today's short covering rally.
The high-range close sets the stage for a steady to higher opening when Tuesday's night session begins trading.

Stochastics and the RSI are oversold, diverging but remain neutral to bearish signaling that additional weakness is possible. If December extends this summer's decline, monthly support crossing at 3.48 is the next downside target.

Closes above the 20-day moving average crossing at 3.78 1/2 would confirm that a short-term low has been posted.

First resistance is the 20-day moving average crossing at 3.78 1/2. Second resistance is the reaction high crossing at 3.95 3/4. First support is today's low crossing at 3.61. Second support is monthly support crossing at 3.48.

December wheat closed up 11 1/4-cents at 5.64 1/2. December wheat closed higher on Monday and above the 20-day moving average crossing at 5.58 1/2.

The high-range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 5.84 1/2 are needed to confirm that a short-term low has been posted.

If December resumes the decline off May's high, psychological support crossing at 5.00 is the next downside target.

First resistance is today's high crossing at 5.71 1/4. Second resistance is the reaction high crossing at 5.84 1/2. First support is last Tuesday's low crossing at 5.42 1/4. Second support is psychological support crossing at 5.00.

December Kansas City Wheat closed up 7-cents at 6.50 1/2. December Kansas City wheat closed higher on Monday and above the 20-day moving average crossing at 6.46 1/4. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term.

Multiple closes above the 20-day moving average crossing at 6.46 1/4 would confirm that a low has been posted.

If December resumes the decline off May's high, January's low crossing at 6.22 is the next
downside target.

First resistance is today's high crossing at 6.50 1/2. Second resistance is the reaction high crossing at 6.60. First support is last Tuesday's low crossing at 6.28 1/4. Second support is January's low crossing at 6.22.

November soybeans closed up 21-cents at 10.79 1/2. November soybeans closed sharply higher due to short covering on Monday due to increasing concerns over dryness across portions of the Midwest.

The high-range close sets the stage for a steady to higher opening when Tuesday's night session begins trading.

Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term.

If November extends the decline off May's high, psychological support crossing at 10.00 is the next downside target.

Multiple closes above last Tuesday's high crossing at 11.16 1/2 would confirm that a low has been posted. First resistance is last Tuesday's high crossing at 11.16 1/2. Second resistance is the reaction high crossing at 11.18 3/4.

First support is today's low crossing at 10.54. Second support is psychological support crossing at 10.00.

December soybean meal closed up $5.40 at 347.80. December soybean meal closed higher on Monday due to short covering.

The high-range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term.

If December renews the decline off May's high, January's low crossing at 337.10 is the next downside target.

Closes above the reaction high crossing at 360.20 are needed to confirm that a low has been posted. First resistance is the reaction high crossing at 360.20. Second resistance is the reaction high crossing at 366.60. First support is the reaction low crossing at 340.00. Second support is January's low crossing at 337.10.

December soybean oil closed up 69 pts. at 36.40. December soybean oil closed higher on Monday but not before posting a new low for the year.

The high-range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are turning neutral signaling that sideways to lower prices are possible near-term.

If December extends this summer's decline, weekly support crossing at 33.71 is the next downside target. Closes above the reaction high crossing at 37.36 are needed to confirm that a short-term low has been posted.

First resistance is the 20-day moving average crossing at 36.68. Second resistance is the reaction high crossing at 37.36. First support is today's low crossing at 35.63. Second support is weekly
support crossing at 33.71.

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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