by Jim Wyckoff, Senior Analyst TraderPlanet.com
Chicago Board of Trade December corn prices Friday closed near the session high, at the weekly high close and hit a fresh three-week high. Rallying soybeans and hot and dry weather that was forecast for this week boosted the market Friday. However, given the sharp overnight losses in electronic trading, it appears weather forecasters have put more rain chances into the Corn Belt forecast. Bulls had regained some good upside technical momentum and have rallied prices over 30 cents from the early-July low. Bulls’ next upside price objective is closing prices above solid technical resistance at $3.75. The next downside price objective for the bears is closing prices below solid chart support at $3.56 a bushel. First resistance for December corn is seen at Friday’s high of $3.71 and then at $3.75. First support is seen at $3.65 and then at Friday’s low of $3.60 1/2.
CBOT December wheat prices Friday closed near mid-range in quieter trading. A rare and potentially bearish diamond pattern has formed on the daily bar chart. Wheat bulls do right now still have the solid upside technical advantage, however. If prices to push to a fresh contract high in the near term, then bulls’ worries about the aforementioned chart formation would be alleviated and still higher prices can be expected. Bulls’ next upside price objective is to close prices above resistance at the contract high of $6.58 a bushel. The next downside price objective for the bears is closing prices below solid support at $6.20 a bushel. First resistance is seen at last week’s high of $6.40 and then $6.45. First support lies at Friday’s low of $6.30 1/2 and then at $6.26.