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Jim Wyckoff's Tuesday Closing Grains: Corn Closes Lower

Jim Wyckoff's Tuesday Closing Grains: Corn Closes Lower

23 July 2013
Jim Wyckoff Commentary -  TheCropSite

US - December corn futures closed down 12 cents at $4.86 Tuesday. Prices closed nearer the session low today and hit a fresh 2.5-year low.

Weather in the U.S. Corn Belt has seen some decent rainfall in the dry portions. Also, more rain chances in the forecast and lower temperatures are near-term bearish. The rain and lower temps come right during the critical pollination period for corn—when high temps and dry winds could hurt yield potential. It appears this latest weather market in corn has proven to be a big dud.

Corn bears have the solid overall near-term technical advantage and gained more downside momentum Tuesday. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at $5.00. 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 $4.90 and then at $4.95. First support is seen at Tuesday’s low of $4.82 and then at $4.80. Wyckoff's Market Rating: 1.0

November soybeans closed down 24 1/2 cents at $12.64 a bushel Tuesday. Prices closed nearer the session low and scored a big and bearish “outside day” down on the daily bar chart. Weather in the U.S. Corn Belt has turned wetter and cooler and that sunk the soybean market Tuesday. Still,
August is the critical month for soybean growth in the Corn Belt. There’s still plenty of time for another weather market scare to occur in soybeans. 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 Tuesday’s low of $12.59 and then at $12.50. First resistance is seen at $12.70 and then at $12.75. Wyckoff's Market Rating: 5.0.

December soybean meal closed down $8.10 at $381.80 Tuesday. Prices closed nearer the session low after hitting a fresh five-week high early on. The meal bulls still have the slight near-term technical advantage, but need to show fresh power soon to keep it. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at

Tuesday’s high of $393.30. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at last week’s low of $370.70. First resistance comes in at $385.00 and then at $388.00. First support is seen at Monday’s low of $379.30 and then at $377.50. Wyckoff's Market Rating: 5.5

December bean oil closed down 62 points at 44.69 cents Tuesday. Prices closed nearer the session low and closed at a fresh contract low close. 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 this week’s high of 45.68 cents.

Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the June contract low of 44.60 cents. First resistance is seen at 45.00 cents and then at 45.25 cents. First support is seen at 44.60 cents and then at 44.50 cents. Wyckoff's Market Rating: 1.0

December Chicago SRW wheat closed down 5 1/4 cents at $6.66 Tuesday. Prices closed near mid-range and hit a fresh contract low. The wheat market bears have the solid overall near-term technical advantage and gained more downside momentum Tuesday. Wheat bulls’ next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at $6.85 a bushel.

The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $6.50. First resistance is seen at Tuesday’s high of $6.71 1/4 and then at this week’s high of $6.78 1/2. First support lies at Tuesday’s contract low of $6.62 and then at $6.50. Wyckoff's Market Rating: 1.0.

December HRW wheat closed down 4 3/4 cents at $7.10 Tuesday. Prices closed nearer the session low. 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 the July 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 $7.14 and then at this week’s high of $7.22 1/2. First support is seen at Tuesday’s low of $7.08 1/2 and then at the July low of $7.05 1/4. Wyckoff's Market Rating: 1.0

December oats closed down 5 1/4 cents at $3.37 Tuesday. Prices closed near the session low and hit a fresh three-week low. Bears have the near-term technical advantage. A big bearish pennant pattern 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 $3.50. First support lies at $3.35 and then at $3.33. First resistance is seen at $3.40 and then at Tuesday’s high of $3.43. Wyckoff's Market Rating: 2.0

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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