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

News

Jim Wyckoff's Morning Report: Corn Closes Lower Overnight

17 January 2014
Jim Wyckoff Commentary -  TheCropSite

GLOBAL - The March NASDAQ 100 was higher overnight as it extends this week’s rally, writes Ken Seehusen.

Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If March extends the 2013 rally, monthly resistance crossing at 3668.00 is the next upside target. Closes below Monday’s low crossing at 3492.50 would confirm that a short-term top has been posted and would open the door for additional weakness near-term. First resistance is Wednesday’s high crossing at 3610.25. Second resistance is monthly resistance crossing at 3668.00. First support is Monday’s low crossing at 3492.50. Second support is December’s low crossing at 3415.25.

The March S&P 500 was higher overnight and poised to extend this week’s rally. Stochastics and the RSI are diverging but have turned bullish signaling that sideways to higher prices are possible near-term. Closes above December’s high crossing at 1846.50 are needed to renew 2013’s rally. If March renews 2013’s rally into uncharted territory, upside targets will be hard to project. Closes below Monday’s low crossing at 1809.80 would confirm that a short-term top has been posted. First resistance is December’s high crossing at 1846.50. Second resistance is unknown. First support is Monday’s low crossing at 1809.80. Second support is December’s low crossing at 1755.00.

INTEREST RATES

March T-bonds were steady to slightly higher overnight. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off December’s low, December’s high crossing at 131-12 is the next upside target. Closes below the 20-day moving average crossing at 129-16 would confirm that a short-term top has been posted. First resistance is December’s high crossing at 131-12. Second resistance is the reaction high crossing at 131-26. First support is the 20-day moving average crossing at 129-16. Second support is December’s low crossing at 127-23.

ENERGY MARKETS

March Nymex crude oil was higher overnight and poised to extend the rebound off last Thursday’s low. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 95.91 are needed to confirm that a short-term low has been posted. If March renews the decline off December’s high, last June’s low crossing at 89.48 is the next downside target. First resistance is the 20-day moving average crossing at 95.91. Second resistance is the 62% retracement level of the decline off December’s high crossing at 97.24. First support is last Thursday’s low crossing at 91.47. Second support is last June’s low crossing at 89.48.

CURRENCIES

The March Dollar was slightly higher overnight. Stochastics and the RSI are diverging but have turned bullish signaling that sideways to higher prices are possible near-term. If March renews the rally off December’s low, November’s high crossing at 81.73 is the next upside target. Closes below the 20-day moving average crossing at 80.77 would confirm that a short-term top has been posted while opening the door for additional weakness near-term. First resistance is last Wednesday’s high crossing at 81.33. Second resistance is November’s high crossing at 81.73. First support is the 20-day moving average crossing at 80.77. Second support is the reaction low crossing at 79.82.

GRAINS

March corn was lower overnight as it continues to setback from Monday’s high. The low-range close sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI are overbought and are turning bearish signaling that sideways to lower prices are possible near-term. Closes below the 10-day moving average crossing at 4.26 would temper the near-term friendly outlook. If March renews the rally off last Friday’s low, December’s high crossing at 4.40 3/4 is the next upside target. First resistance is the reaction high crossing at 4.36. Second resistance is December’s high crossing at 4.40 3/4. First support is the 10-day moving average crossing at 4.26. Second support is last Friday’s low crossing at 4.06 1/4.

March wheat was lower overnight as it extends this week’s trading range. The low-range close sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off October’s high, weekly support crossing at 5.54 3/4 is the next downside target. Closes above the 20-day moving average crossing at 5.93 3/4 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 5.81 1/4. Second resistance is the 20-day moving average crossing at 5.93 3/4. First support is last Friday’s low crossing at 5.60 1/2. Second support is weekly support crossing at 5.54 3/4.

March soybeans were lower due to profit taking overnight following Thursday’s posting of a downside reversal. The low-range close sets the stage for a steady to lower opening when the day session begins trading. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If March extends this week’s rally, December’s high crossing at 13.39 1/4 is the next upside target. Closes below the 10-day moving average crossing at 12.91 1/2 would confirm that a short-term low has been posted. First resistance is Thursday’s high crossing at 13.30 1/2. Second resistance is December’s high crossing at 13.39 1/4. First support is the 10-day moving average crossing at 12.91 1/2. Second resistance is January’s low crossing at 12.62 1/2.

NOTE: I am out of the office today. My friend and fellow market analyst Ken Seehusen produced my report.-—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