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Wyckoff's Closing Grains: Corn Closed Higher

Wyckoff's Closing Grains: Corn Closed Higher

12 August 2014
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed up 4 3/4 cents at $3.68 1/4 Monday. Prices closed near the session high on short covering.

Traders are gearing up for Tuesday’s USDA crop production and supply and demand report. The corn market bears are still in solid overall technical control.
A steep three-month-old 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 $3.77 3/4. The next downside price breakout objective for the bears is pushing and closing prices below solid support at the recent contract low of $3.61. First resistance for December corn is seen at last week’s high of $3.74 3/4 and then at $3.77 3/4. First support is seen at $3.65 and then at $3.61. Wyckoff's Market Rating: 1.5

November soybeans closed down 11 1/2 cents at $10.73 1/4 a bushel Monday. Prices closed near the session low. Corn Belt extended weather forecasts still show benign weather for soybeans late into the growing season, and that’s bearish. The crop is just about made, save for an early frost. Traders are awaiting Tuesday’s monthly USDA crop production and supply and demand reports. The soybean bears have the solid overall near-term technical advantage. The bulls can make an argument that prices are “basing” at lower levels, which does put in market bottoms. 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 the contract low of $10.54. First resistance is seen at today’s high of $10.89 1/4 and then at $11.00. First support is seen at $10.70 and then at $10.60. Wyckoff's Market Rating: 1.5.

December soybean meal closed down $1.60 at $349.00 Monday. Prices closed nearer the session low today. The soybean meal bears have the firm overall near-term technical advantage. However, prices could also be “basing” at lower levels. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at $360.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at the July low of $340.00. First resistance comes in at last week’s high of $351.10 and then at today’s high of $354.50. First support is seen at today’s low of $347.70 and then at $345.00. Wyckoff's Market Rating: 2.0

December bean oil closed down 66 points at 35.21 cents Monday. Prices closed near the session low and hit a contract low today. The bean oil bears have the solid overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at 36.50 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 35.00 cents. First resistance is seen at 35.50 cents and then at today’s high of 35.95 cents. First support is seen at today’s contract low of 35.13 cents and then at 35.00 cents. Wyckoff's Market Rating: 1.0

December Chicago SRW wheat closed down 3 1/4 cents at $5.62 3/4 Monday. Prices closed near mid-range. The wheat bears still have the overall near-term technical advantage even though recent price action suggests a market bottom is in place. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at last week’s high of $5.91. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at the contract low of $5.40 1/4. First resistance is seen at today’s high of $5.71 1/2 and then at $5.75. First support lies at today’s low of $5.57 3/4 and then at $5.50. Wyckoff's Market Rating: 2.0.

December HRW wheat closed down 5 3/4 cents at $6.37 Monday. Prices closed nearer the session low. The wheat bears have the overall near-term technical advantage, even though a three-month-old downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at last week’s high of $6.74 1/4. The bears' next downside breakout objective is pushing and closing prices below solid technical support at the July low of $6.27. First resistance is seen at today’s high of $6.46 1/2 and then at $6.50. First support is seen at today’s low of $6.32 3/4 and then at of $6.27. Wyckoff's Market Rating: 1.5

December oats closed down 1/4 cent at $3.31 Monday. Prices closed near mid-range. Trading has been choppy. Bulls and bears are back on a level near-term technical playing field. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at $3.26 1/4. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at last week’s high of $3.47 3/4. First support lies at $3.30 and then at today’s low of $3.28. First resistance is seen at today’s high of $3.35 and then at $3.38 1/2. Wyckoff's Market Rating: 5.0

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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