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Wyckoff's Closing Grains: Corn Closed Higher

13 March 2014
Jim Wyckoff Commentary -  TheCropSite

US - May corn futures closed up 5 1/4 cents at $4.88 1/2 Wednesday.

Prices closed near the session high. Corn prices are in a two-month-old uptrend on the daily bar chart. Corn bulls have the 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 $5.02 1/2. The next downside price breakout objective for the bears is pushing and closing prices below solid support at this week’s low of $4.73 1/4. First resistance for May corn is seen at $4.90 and then at $4.95. First support is seen at $4.85 and then at $4.80. Wyckoff's Market Rating: 6.5

May soybeans closed down 25 cents at $13.88 a bushel Wednesday. Prices closed near mid-range today and saw heavy profit taking from recent gains. There were also worries about China cancelling U.S. previously booked U.S. corn purchases. The soybean bulls still have the slight overall near-term technical advantage, but have faded badly to suggest a near-term market top is in place. A steep six-week-old uptrend on the daily bar chart was negated today. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at the contract high of $14.60 a bushel. The next downside price breakout objective for the bears is pushing prices below solid technical support at $13.50. First resistance is seen at $14.00 and then at today’s high of $14.07 1/4. First support is seen at $13.75 and then at today’s low of $13.65 1/2. Wyckoff's Market Rating: 5.5.

May soybean meal closed down $7.50 at $436.70 Wednesday. Prices closed near mid-range and hit a four-week low today, on more taking from recent gains. Bulls still have the slight overall near-term technical advantage, but are fading to suggest a market top is in place. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at $450.00. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $430.00. First resistance comes in at $440.00 and then at today’s high of $442.80. First support is seen at $435.00 and then at today’s low of $431.00. Wyckoff's Market Rating: 5.5

May bean oil closed down 29 points at 43.46 cents Wednesday. Prices closed nearer the session high and saw more profit taking. The bean oil bulls still have the overall near-term technical advantage. 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 45.05 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at 42.00 cents. First resistance is seen at today’s high of 43.71 cents and then at 44.00 cents. First support is seen at 43.00 cents and then at today’s low of 42.82 cents. Wyckoff's Market Rating: 6.0

May Chicago SRW wheat closed up 24 cents at $6.83 Wednesday. Prices closed nearer the session high today and hit a 4.5-month high. The Ukraine crisis and poor U.S. winter wheat conditions are boosting the wheat futures markets. The wheat bulls have the overall near-term technical advantage and gained more upside momentum today. Prices are in a steep six-week-old uptrend on the daily bar chart. 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 this week’s low of $6.37. First resistance is seen at today’s high of $6.84 1/2 and then at $6.90. First support lies at $6.75 and then at $6.65. Wyckoff's Market Rating: 7.0.

May HRW wheat closed up 19 1/4 cents at $7.47 3/4 Wednesday. Prices closed nearer the session high and hit a fresh 4.5-month high. The wheat bulls have the overall technical advantage and gained more upside momentum today. Prices are in a steep six-week-old uptrend on the daily bar chart. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at the October high of $7.71 1/2. The bears' next downside breakout objective is pushing and closing prices below solid technical support at this week’s low of $7.07. First resistance is seen at today’s high of $7.49 1/2 and then at $7.60. First support is seen at $7.38 and then at $7.30. Wyckoff's Market Rating: 7.0

May oats closed up the 20-cent limit at $4.44 1/2 Wednesday. Weak-handed shorts were squeezed out of the market today and more of the same may occur on Thursday. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at this week’s low of $4.15 1/4. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at $4.60. First support lies at $4.40 and then at $4.35. First resistance is seen at $4.50 and then at $4.55. Wyckoff's Market Rating: 6.0

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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