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Jim Wyckoff's Tuesday Closing Grains: Midwest Heat Supports Corn, Soy

Jim Wyckoff's Tuesday Closing Grains: Midwest Heat Supports Corn, Soy

16 July 2013
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed up 7 3/4 cents at $5.11 1/4 Tuesday. Prices closed near mid-range.

Weather forecasts in the US midsection in the summertime can be hit-and-miss and can change on a dime. Today, a bit more heat and a bit less precip were in the extended forecasts. That did prompt some buying interest in corn. Also, the latest crop progress data from USDA showed the U.S. corn crop deteriorated a bit from last week.

Corn bears still have the solid overall near-term technical advantage at present. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at last week’s high of $5.28 1/4. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at the July low of $4.90. First resistance for December corn is seen at Tuesday’s high of $5.18 1/2 and then at $5.25. First support is seen at Tuesday’s low of $5.06 and then at $5.00. Wyckoff's Market Rating: 2.5

November soybeans closed up 23 cents at $12.86 3/4 a bushel Tuesday. Prices closed nearer the session high and saw more short covering. Weather forecasts for the U.S. Corn Belt have now turned a bit warmer and drier, and that also supported buying interest. The latest USDA crop progress report also showed the U.S. soybean crop condition dropped a bit. The soybean bulls and bears are now back on a level near-term technical playing field. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $13.00 a bushel. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $12.50. First support is seen at $12.75 and then at Tuesday’s low of $12.65 1/2. First resistance is seen at Tuesday’s high of $12.97 and then at $13.00. Wyckoff's Market Rating: 5.0.

December soybean meal closed up $11.90 at $388.80 Tuesday. Prices closed nearer the session high, hit a fresh four-week high and saw more short covering. The meal bulls have the near-term technical advantage and gained more power Tuesday. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at the June high of $399.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at this week’s low of $370.70. First resistance comes in at Tuesday’s high of $391.30 and then at $395.00. First support is seen at $385.00 and then at $382.50. Wyckoff's Market Rating: 6.0

December bean oil closed steady at 45.28 cents Tuesday. Prices closed nearer the session 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 46.53 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the June low of 44.60 cents. First resistance is seen at 45.50 cents and then at Monday’s high of 45.74 cents. First support is seen at Monday’s low of 45.14 cents and then at 45.00 cents. Wyckoff's Market Rating: 1.5

December Chicago SRW wheat closed up 1/4 cent at $6.82 1/2 Tuesday. Prices closed nearer the session low. The wheat market bears have the solid overall near-term technical advantage. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at last week’s high of $7.05 3/4 a bushel. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at the July low of $6.66 1/4. First resistance is seen at Monday’s high of $6.90 3/4 and then at $6.95. First support lies at Tuesday’s low of $6.78 1/2 and then at $6.75. Wyckoff's Market Rating: 2.0.

December HRW wheat closed up 2 1/4 cents at $7.20 1/4 Tuesday. Prices closed nearer the session low. The HRW wheat market bears still have the solid overall near-term technical advantage. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at last week’s high of $7.37 1/2. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $7.00. First resistance is seen at Tuesday’s high of $7.27 1/2 and then at last week’s high of $7.37 1/2. First support is seen at Monday’s low of $7.13 and then at last week’s low of $7.05 1/4. Wyckoff's Market Rating: 1.5

December oats closed up 1 1/2 cents at $3.43 1/4 Tuesday. Prices closed nearer the session low. Bears have the near-term technical advantage. A big bear flag has formed on the daily bar chart. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at the July low of $3.33. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at last week’s high of $3.53 1/4. First support lies at Monday’s low of $3.40 1/2 and then at the April low of $3.39 1/4. First resistance is seen at $3.45 and then at Tuesday’s high of $3.48 3/4. Wyckoff's Market Rating: 2.5

Click here for "Today’s Hot Market" item on my website.

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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