Jim Wyckoff's Wednesday Closing CME Grains: Rain Forecast Spooks Corn Bulls
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.
18 July 2013
4 minute read
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
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~Jim
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