TheCropSite.com- news, features, articles and disease information for the crop industry

News

Jim Wyckoff's Wednesday Closing Grains: Rain Forecast Spooks Corn Bulls

Jim Wyckoff's Wednesday Closing Grains: Rain Forecast Spooks Corn Bulls

17 July 2013
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed down 8 3/4 cents at $5.02 Wednesday. Prices closed near the session low, writes Jim Wyckoff, grain analyst.

Weather forecasts in the U.S. Corn Belt remain the major focus of traders. Wednesday, some more rainfall was put into some extended forecasts and that spooked the corn bulls a bit. Corn bears have the solid overall near-term technical advantage. 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 $5.07 and then at $5.10. First support is seen at $5.00 and then at $4.95. Wyckoff's Market Rating: 2.0

November soybeans closed down 2 3/4 cents at $12.83 1/2 a bushel Wednesday. Prices closed near mid-range. Weather forecasts for the U.S. Corn Belt have now turned a bit wetter. However, offsetting that newly bearish element is still-strong near-term demand for U.S. soybeans. The soybean bulls and bears are 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 Wednesday’s low of $12.75 1/4 and then at Tuesday’s low of $12.65 1/2. First resistance is seen at Wednesday’s high of $12.93 and then at this week’s high of $12.97. Wyckoff's Market Rating: 5.0.

December soybean meal closed down $2.60 at $386.00 Wednesday. Prices closed nearer the session low on some mild profit taking after prices Tuesday hit a four-week high. The meal bulls still 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 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 Wednesday’s high of $389.60 and then at this week’s high of $391.30. First support is seen at Wednesday’s low of $384.00 and then at $380.00. Wyckoff's Market Rating: 6.0

December bean oil closed up 23 points at 45.51 cents Wednesday. Prices closed near mid-range on short covering in a bear market. The bean oil bears still 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 this week’s high of 45.74 cents and then at 46.00 cents. First support is seen at this week’s low of 45.14 cents and then at 45.00 cents. Wyckoff's Market Rating: 2.0

December Chicago SRW wheat closed down 4 3/4 cents at $6.77 3/4 Wednesday. 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 Wednesday’s high of $6.86 1/2 and then at $6.95. First support lies at Wednesday’s low of $6.77 and then at $6.70. Wyckoff's Market Rating: 1.5.

December HRW wheat closed down 1 1/4 cents at $7.19 Wednesday. Prices again 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 this week’s high of $7.27 1/2 and then at last week’s high of $7.37 1/2. First support is seen at this week’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 down 2 1/2 cents at $3.40 3/4 Wednesday. 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 Wednesday’s low of $3.39 and then at $3.35. First resistance is seen at Wednesday’s high of $3.45 and then at this week’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.



Our Sponsors