GRAINS: December corn futures closed up 21 1/4 cents at $5.21 3/4 Tuesday. Prices closed nearer the session high on heavy short covering and bargain hunting after hitting a 2.5-year low on Monday. While corn bears still have the overall near-term technical advantage, the bulls this week are gaining upside near-term momentum. This is the critical timeframe of the year (early July) in which grain prices can reverse trends or accelerate them. How prices close on Friday (near their weekly high or weekly low) could be a strong clue on price action for weeks to come. There is hotter and drier weather forecast for the U.S. Corn Belt next week, which could become a significant development for the grain markets as the week progresses. Corn bulls’ next upside price objective is to push and close prices above solid technical resistance at $5.40. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at this week’s low of $4.90. First resistance for December corn is seen at Tuesday’s high of $5.24 1/2 and then at $5.30. First support is seen at $5.17 and then at $5.12. Wyckoff’s Market Rating: 2.5
November soybeans closed up 24 cents at $12.76 1/4 a bushel Tuesday. Prices closed nearer the session high. More heavy short covering was featured and fresh bargain hunting were featured. The bean bears still have the slight overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart was negated Tuesday as the bulls have gained some upside near-term technical momentum. 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 this week’s low of $12.25. First support is seen at $12.70 and then at $12.60. First resistance is seen at Tuesday’s high of $12.86 3/4 and then at $12.95. Wyckoff’s Market Rating: 4.5.
December soybean meal closed up $10.70 at $378.90 Tuesday. Prices closed nearer the session high. The meal bulls and bears are now back on a level overall near-term technical playing field. The next upside price breakout objective for the bulls is to produce a close above solid technical resistance at $391.20. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at this week’s low of $357.00. First resistance comes in at $380.00 and then at Tuesday’s high of $383.70. First support is seen at $375.00 and then at $372.50. Wyckoff’s Market Rating: 5.0
December bean oil closed up 8 points at 45.97 cents Tuesday. Prices closed near mid-range. The bean oil bears 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 46.64 cents. Bean oil bears’ next downside technical price breakout objective is pushing and closing prices below solid technical support at 44.00 cents. First resistance is seen at Tuesday’s high of 46.24 cents and then at last week’s high of 46.38 cents. First support is seen at Tuesday’s low of 45.47 cents and then at 45.26 cents. Wyckoff’s Market Rating: 2.0
December Chicago SRW wheat closed up 15 3/4 cents at $6.90 1/2 Tuesday. Prices closed nearer the session high. More short covering in a bear market was featured. The wheat market bears still have the overall near-term technical advantage. Good follow-through buying strength on Wednesday would provide the bulls with some fresh upside technical momentum. 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 last week’s low of $6.66 1/4. First resistance is seen at Tuesday’s high of $6.95 and then at $7.00. First support lies at $6.84 1/2 and then at Tuesday’s low of $6.74 1/4. Wyckoff’s Market Rating: 2.0.
December HRW wheat closed up 14 1/4 cents at $7.23 Tuesday. Prices closed nearer the session high and saw short covering in a bear market. 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 $7.40. The bears’ next downside breakout objective is pushing and closing prices below solid technical support at $7.00. First resistance is seen at Tuesday’s high of $7.26 3/4 and then at $7.35. First support is seen at $7.15 and then at the contract low of $7.05 1/4. Wyckoff’s Market Rating: 1.5
December oats closed up 5 cents at $3.50 Tuesday. Prices closed nearer the session high on short covering. Bears still have the near-term technical advantage. Bears’ next downside price breakout objective is pushing and closing prices below solid technical support at $3.25. Bulls’ next upside price breakout objective is pushing and closing prices above solid technical resistance at $3.50. First support lies at $3.46 and then at Tuesday’s low of $3.44. First resistance is seen at Tuesday’s high of $3.52 1/2 and then at $3.54. Wyckoff’s Market Rating: 2.4
