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Wyckoff's Closing Grains: Corn Closed Higher

Wyckoff's Closing Grains: Corn Closed Higher

17 September 2014
Jim Wyckoff Commentary -  TheCropSite

US - December Corn closed up 3/4-cents at 3.43 3/4. December corn closed fractionally higher due to short covering on Tuesday.

The FSA released their acreage report this morning and showed that farmers had planted some 2 million less acres of corn that the USDA has been forecasting.

This report initial helped to support overnight short covering gains.

However, the looming corn harvest in the Midwest along with continued reports of better-than-expected yields tempered this friendly news and helped to limit today's gains. The mid-range close sets the stage for a steady opening when Wednesday's night session begins trading.

Stochastics and the RSI are oversold and are turning neutral to bullish hinting that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 3.56 3/4 are needed to confirm that a short-term low has been posted.

If December extends the decline off August's high, monthly support crossing at 3.24 1/2 is the next downside target. First resistance is the 20-day moving average crossing at 3.56 3/4. Second resistance is August's high crossing at 3.81. First support is last Thursday's low crossing at 3.35 3/4. Second support is monthly support crossing at 3.24 1/2.

December wheat closed down 4 1/2-cents at 4.96 1/4. December wheat closed lower on Tuesday as it extends this summer's decline. The low- range close sets the stage for a steady to lower opening when Wednesday's night session begins trading.

Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If December extends the decline off August's high, monthly support crossing at 4.75 1/2 is the next downside target.

Closes above the 20-day moving average crossing at 5.39 are needed to confirm that a low has been posted. First resistance is the 10-day moving average crossing at 5.19. Second resistance is the 20-day moving average crossing at 5.39. First support is today's low crossing at 4.91. Second support is monthly support crossing at 4.75 1/2.

December Kansas City Wheat closed down 3-cents at 5.83 1/4. December Kansas City wheat closed lower on Monday as it extends this summer's decline. The low-range close sets the stage for a steady to lower opening on Wednesday.

Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. If December extends the decline off May's high, weekly support crossing at 5.66 is the next downside target.

Closes above the 20-day moving average crossing at 6.23 1/2 are needed to confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 6.23 1/2. Second resistance is the reaction high crossing at 6.44 3/4.

First support is today's low crossing at 5.83 1/4. Second support is weekly support crossing at 5.66.

November soybeans closed down 8 3/4-cents at 9.80 3/4. November soybeans closed lower on Tuesday as soybean harvest continues in southern states and weather forecasts show few threats to maturing soybeans further north.

The crop was rated 72% good to excellent in Monday's weekly crop updates, but was slightly behind on maturity with 24% dropping leaves, which was behind the 32% average. The low-range close sets the stage for a steady to lower opening when Wednesday's night session begins trading.

Stochastics and the RSI are turning neutral to bearish again signaling that sideways to lower prices are possible near-term. If November extends the decline off May's high, monthly support crossing at 9.30 1/2 is the next downside target.

Multiple closes above the 20-day moving average crossing at 10.15 3/4 are needed to confirm that a low has been posted. First resistance is the 10-day moving average crossing at 9.97 1/2. Second resistance is the 20-day moving average crossing at 10.15 3/4. First support is last Thursday's low crossing at 9.69 1/2. Second support is monthly support crossing at 9.30 1/2.

December soybean meal closed down $0.90 at 326.10. December soybean meal closed lower on Tuesday as it extends this month's decline. The mid- range close sets the stage for a steady opening when Wednesday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term.

If December extends the decline off May's high, the 75% retracement level of the 2012-2014-rally crossing at 319.30 is the next downside target. Closes above the 20-day moving average crossing at
342.80 are needed to confirm that a low has been posted. First resistance is the 10-day moving average crossing at 336.90.

Second resistance is the 20-day moving average crossing at 342.80. First support is today's low cossing at 323.60. Second support is the 75% retracement level of the 2012-2014-rally crossing at 319.30.

December soybean oil closed down 47 pts. at 33.00. December soybean oil closed lower on Tuesday but remains above the 20-day moving average.

The low-range close sets the stage for a steady to lower opening when Wednesday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, the 25% retracement level of this summer's decline crossing at 34.41 is the next upside target.

If December resumes this year's decline, weekly support crossing at 29.57 is the next downside target. First resistance is today's high crossing at 33.83. Second resistance is the 25% retracement level of this summer's decline crossing at 34.41.

First support is last Wednesday's low crossing at 31.52. Second support is weekly support crossing at 29.57.

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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