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Wyckoff's Closing Grains: Corn Closed Lower

Wyckoff's Closing Grains: Corn Closed Lower

03 September 2014
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed down 3/4 cent at $3.64 Tuesday. Prices closed nearer the session low today.

The key “outside markets” were very bearish for the corn market today as the U.S. dollar index was higher and hit a 13-month high, while crude oil prices were sharply lower. Not much new, fundamentally.

Bears are still in firm overall technical control. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at the August high of $3.81. The next downside price breakout objective for the bears is pushing and closing prices below solid support at the contract low of $3.58. First resistance for December corn is seen at today’s high of $3.67 1/2 and then at $3.70. First support is seen at today’s low of $3.62 1/4 and then at $3.60. Wyckoff's Market Rating: 1.5

November soybeans closed up 9 cents at $10.33 1/2 a bushel Tuesday. Prices closed nearer the session high and saw short covering in a bear market today. The soybean bears still have the solid overall near-term technical advantage. Prices are in a 13-week-old downtrend on the daily bar chart. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $10.50 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $10.00. First resistance is seen at today’s high of $10.38 and then at $10.47 3/4. First support is seen at the contract low of $10.19 3/4 and then at $10.10. Wyckoff's Market Rating: 1.5.

December soybean meal closed up $9.10 at $359.90 Tuesday. Prices closed nearer the session high and hit a six-week high on short covering. Today’s price action hints meal has put in a market low. The soybean meal bears still have the overall near-term technical advantage. 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 today’s high of $362.00 and then at $365.00. First support is seen at $358.00 and then at $355.00. Wyckoff's Market Rating: 3.0

December bean oil closed down 5 points at 32.09 cents Tuesday. Prices closed nearer the session low and hit another contract low today.

The bean oil bears have the solid overall near-term technical advantage. Prices are in a two-month-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 33.71 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 31.00 cents.

First resistance is seen at today’s high of 32.60 cents and then at 33.00 cents. First support is seen at today’s contract low of 31.96 cents and then at 31.75 cents. Wyckoff's Market Rating: 1.0

December Chicago SRW wheat closed down 8 1/2 cents at $5.55 Tuesday. Prices closed nearer the session low today. The key “outside markets” were very bearish for the wheat market today as the U.S. dollar index was higher and hit a 13-month high, while crude oil prices were sharply lower. The wheat bears have the solid overall near-term technical advantage. However, the sideways and choppy price action at lower levels the past six weeks still could be “basing” action that puts in a market low sooner rather than later.

Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at the August 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 $5.66 and then at $5.71. First support lies at $5.50 and then at $5.45. Wyckoff's Market Rating: 1.5.

December HRW wheat closed down 10 1/4 cents at $6.32 1/2 Tuesday. Prices closed nearer the session low. The wheat bears have the solid overall near-term technical advantage. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at the August high of $6.74 1/4.

The bears' next downside breakout objective is pushing and closing prices below solid technical support at the contract low of $6.17 3/4. First resistance is seen at today’s high of $6.42 3/4 and then at $6.50. First support is seen at today’s low of $6.28 1/4 and then at last week’s low of $6.23 1/2. Wyckoff's Market Rating: 1.5

December oats closed up 4 3/4 cents at $3.47 Tuesday. Prices closed near mid-range. Bulls have the slight near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at last week’s low of $3.36 3/4.

Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at the August high of $3.60 3/4. First support lies at $3.45 and then at today’s low of $3.43. First resistance is seen at $3.50 and then at today’s high of $3.51 3/4. 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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