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Jim Wyckoff's Monday Closing Grains: Corn Hits Fresh 2.5-Year Low

Jim Wyckoff's Monday Closing Grains: Corn Hits Fresh 2.5-Year Low

01 July 2013
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed down 9 3/4 cents at $5.01 3/4 Monday. Prices closed nearer the session low and hit a fresh 2.5-year low.

A very bearish USDA acreage report last Friday has sunk the corn market. Prices are now poised to push below major psychological support at the $5.00 level. Corn bears have the solid overall near-term technical advantage. This is the critical week of the year (July 4th U.S. holiday) in which grain prices can reverse trends or accelerate them. Right now it appears the grain market bears are working to accelerate price downtrends. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $5.25 3/4. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $4.75. First resistance for December corn is seen at Monday’s high of $5.08 1/2 and then at $5.10. First support is seen at $5.00 and then at $4.95. Wyckoff's Market Rating: 1.0

November soybeans closed down 8 3/4 cent at $12.43 1/4 a bushel Monday. Prices closed nearer the session low and hit a fresh five-week low. Bearish USDA data last week have hit the soybean market, too. The bears have the overall near-term technical advantage. Weather in the U.S. Corn Belt remains benign for both soybeans and corn, and that’s also bearish. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at last week’s high of $12.84 3/4 a bushel. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $12.25. First support is seen at Monday’s low of $12.38 and then at $12.30. First resistance is seen at $12.50 and then at Monday’s high of $12.59. Wyckoff's Market Rating: 3.5.

December soybean meal closed down $8.00 at $366.00 Monday. Prices closed nearer the session low and hit a fresh five-week low. The meal bears now have the near-term technical advantage. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at last week’s high of $391.20. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $360.00. First resistance comes in at $370.00 and then at $371.50. First support is seen at Monday’s low of $365.10 and then at $362.50. Wyckoff's Market Rating: 4.0

December bean oil closed up 56 points at 45.68 cents Monday. Prices closed near the session high on short covering in a bear market. Prices last Friday hit another contract low. The bean oil bears have the solid overall near-term technical advantage. There are no early technical clues that a market bottom is close at hand. The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at last week’s high of 46.64 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 44.00 cents. First resistance is seen at Monday’s high of 45.71 cents and then at 46.00 cents. First support is seen at 45.50 cents and then at 45.00 cents. Wyckoff's Market Rating: 1.5

December Chicago SRW wheat closed down 2 1/4 cents at $6.69 1/4 Monday. Prices closed nearer the session low and hit another fresh contract low. The wheat market bears have the solid overall near-term technical advantage. There are no strong, early technical clues this market has put in a bottom. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $7.00 a bushel. 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 $6.50. First resistance is seen at Monday’s high of $6.77 1/4 and then at $6.88 1/2. First support lies at Monday’s contract low of $6.66 1/4 and then at $6.60. Wyckoff's Market Rating: 1.0.

December HRW wheat closed up 2 1/4 cents at $7.12 1/2 Monday. Prices closed nearer the session high and hit a fresh contract low early on. The HRW wheat market 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 $7.40. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $7.00. First resistance is seen at Monday’s high of $7.15 and then at $7.25. First support is seen at Monday’s contract low of $7.06 and then at $7.00. Wyckoff's Market Rating: 1.0

December oats closed down 17 3/4 cents at $3.42 3/4 Monday. Prices closed nearer the session high and did hit a fresh three-month low. Bears have quickly gained the solid near-term technical advantage. Prices are in a very steep two-week-old downtrend. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at the contract low of $3.38 1/4. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.55. First support lies at Monday’s low of $3.42 and then at $3.39 1/4. First resistance is seen at $3.46 and then at $3.50. Wyckoff's Market Rating: 1.5

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Questions? Just email me at [email protected] I enjoy hearing from my readers worldwide.

~Jim

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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