by Jim Wyckoff, Senior Analyst TraderPlanet.com

DECEMBER CORN

December corn futures closed up 5 3/4 cents at $3.42 1/2 today. Prices closed near the session high on short covering in a bear market. Prices hit an 8.5-month low Tuesday. While the Corn Belt weather forecast has turned wet this week, there is now talk of a heat dome building in the western Corn Belt next week, and that was mildly supportive to corn today. While I do not see a lot of downside price potential in corn with prices at present levels, neither do I see strong upside price potential. Bulls’ next upside price objective is closing prices above solid technical resistance at $3.50. The next downside price objective for the bears is to close prices below solid support at this week’s low of $3.31 1/2. First resistance for December corn is seen at today’s high of $3.43 and then at $3.48. First support is seen at $3.40 and then at today’s low of $3.35 1/2.

Wyckoff’s Market Rating: 3.5.

NOVEMBER SOYBEANS

November soybeans closed up 16 cents at $8.76 1/2 today. Prices closed near the session high on some short covering and bargain-hunting buying after the very strong losses earlier this week. Talk of a heat dome building in the western Corn Belt next week was also supportive to beans. However, serious near-term chart damage has been inflicted in soybeans recently to still suggest a major market top is in place. The next upside price objective for the bulls is closing prices above solid technical resistance at $8.93. The next downside price objective for the bears is closing prices below solid support at this week’s low of $8.55 1/2. First resistance for November soybeans is seen at $8.80 and then at $8.86. First support is seen at $8.70 and then at today’s low of $8.63.

Wyckoff’s Market Rating: 6.5.

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Source: VantagePoint Intermarket Analysis Software

DECEMBER SOYBEAN MEAL

December soybean meal closed up $4.40 at $235.20 today. Prices closed near mid-range on short covering. It still appears a major market top is in place. Serious damage has occurred recently. The next upside price objective for the bulls is producing a close above solid chart resistance at $240.00. The next downside price objective for the bears is closing prices below solid support at this week’s low of $229.30. First resistance comes in at today’s high of $237.10 and then at $240.00. First support is seen at today’s low of $233.80 and then at $232.50.

Wyckoff’s Market Rating: 5.5.

DECEMBER BEAN OIL

December bean oil closed up 58 points at 38.59 cents today. Prices closed nearer the session high. Crude oil prices climbing above $75.00 a barrel has given the bean oil bulls some immunity from huge losses this week in beans and meal. However, it’s highly unlikely oil can make any more upside headway if meal and beans to not also rally. However, bean oil bulls still have the near-term technical advantage and no serious chart damage has occurred. The next upside price objective for the bulls is pushing prices above solid technical resistance at 38.74 cents, which would fill on the upside this week’s downside price gap on the daily bar chart. Bears’ next downside price objective is pushing and closing prices below solid support at 37.50 cents. First resistance is seen at today’s high of 38.70 cents and then at 38.74 cents. First support is seen at today’s low of 38.11 cents and then at this week’s low of 37.63 cents.

Wyckoff’s Market Rating: 8.0.

DECEMBER CHICAGO WHEAT

December Chicago SRW wheat closed up 25 1/4 cents at $6.42 1/2 today. Prices closed near the session high today and closed at a fresh contract high close. While a rare and potentially bearish diamond pattern has formed on the daily bar chart, now strong follow-through buying on Thursday and a fresh contract high produced would negate that pattern. Wheat bulls right now still have the upside technical advantage. 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 strong support at $6.10 a bushel. First resistance is seen at today’s high of $6.45 and then at $6.50. First support lies at $6.35 and then at $6.30.

Wyckoff’s Market Rating: 8.5.

DECEMBER K.C. WHEAT

December K.C. HRW wheat closed up 19 cents at $6.20 1/2 today. Prices closed near the session high today. Wheat bulls still have the technical advantage and gained fresh momentum today. While a bearish head-and-shoulders top reversal pattern has formed on the daily bar chart, strong follow-through buying on Thursday would negate that pattern. Bulls’ next upside price objective is closing prices above solid resistance at $6.31 a bushel. The bears’ next downside objective is closing prices below solid support at $6.00 a bushel. First resistance is seen at today’s high of $6.23 and then at $6.31. First support is seen at $6.15 and then at $6.10.

Wyckoff’s Market Rating: 8.0.

DECEMBER OATS

December oats closed down 3/4 cent at $2.51 1/4 today. Prices hit a fresh two-month low and closed near the session low again today. Very serious near-term chart damage has occurred in oats this week. The next upside price objective for the bulls is closing prices above solid technical resistance at $2.62. Bears’ next downside price objective is closing prices below solid technical support at $2.50. First resistance lies at today’s high of $2.53 1/2 and then at $2.56. First support is seen at today’s low of $2.51 and then at $2.50.

Wyckoff’s Market Rating: 4.0.

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Source: VantagePoint Intermarket Analysis Software