Soy Complex, Grain Futures – August 20, 2007

Chicago Board of Trade December corn prices Friday closed higher and near the session high on short covering and some fresh bargain-hunting buying. Bulls will have to close prices above solid resistance at $3.50 to regain some fresh upside technical momentum. The next downside price objective for the bears is to close prices below solid support at the July low of $3.24 1/2. First resistance for December corn is seen at Friday’s high of $3.46 and then at $3.50. First support is seen at $3.40 and then at $3.36.

CBOT December wheat prices Friday closed slightly higher and near the session high in quieter trading. Price action last week did produce a bearish “key reversal” down on the daily bar chart, which is one very early technical clue that a market top is in place. Bulls’ next upside price objective is to close prices above resistance at $7.00 a bushel. The next downside price objective for the bears is closing prices below strong support at last week’s low of $6.70 a bushel. First resistance is seen at $6.90 and then at $6.97. First support lies at $6.80 and then at $6.70.

7.14 1/2 — the contract high
6.91 3/4 — 10-day moving average
6.72 3/4 — 20-day moving average
6.48 3/4 — 40-day moving average
3.86 ——– the contract low

December Kansas City wheat prices Friday closed steady and nearthe session high. Wheat bulls still have the technical advantage amid no signs of a market top. However, the big declines in mostraw commodity prices Thursday should be a warning to wheat bulls. Bulls’ next upside price objective is closing prices above solid resistance at the contract high of $6.94 a bushel. The bears’ next downside objective is closing prices below solid support atlast week’s low of $6.49 a bushel. First resistance is seen atFriday’s high of $6.65 1/2 and then at $6.70. First support is seen at Friday’s low of $6.56 and then at $6.49.

6.94 ——– the contract high
6.70 3/4 — 10-day moving average
6.59 ——– 20-day moving average
6.35 1/2 — 40-day moving average
4.16 ——– the contract low

NOVEMBER SOYBEANS

November soybean prices Friday closed solidly higher and near the session high on short covering following Thursday’s big losses. However, serious chart damage was inflicted last Thursday, including the formation of a bearish head-and-shoulders top reversal pattern on the daily bar chart. Traders will continue to keep one eye on the financial markets, and any more gyrations will impact the grains and soybean complex futures. The next downside price objective for the bean bears is closing prices below solid support at last week’s low of $8.04 1/2. The next upside price objective for the bulls is pushing prices above solid technical resistance at $8.51 1/2, which would fill on the upside last Thursday’s downside price gap on the daily chart. First resistance for November soybeans is seen at Friday’s high of $8.30 and then at $8.36. First support is seen at $8.25 and then at $8.20.

9.49 1/2 — the contract high
8.58 1/2 — 10-day moving average
8.53 1/2 — 20-day moving average
8.68 1/4 — 40-day moving average
5.95 ——– the contract low

DECEMBER SOYBEAN MEAL

CBOT December soymeal prices Friday closed slightly higher and nearer the session high on tepid short covering. Serious near-term chart damage was inflicted last Thursday. Bears still have some downside technical momentum on their side. The next downside price objective for the bears is closing prices below solid support at the July low of $220.50. The next upside price objective for the meal bulls is to push prices back to solid resistance at $234.80, which would fill on the upside last Thursday’s downside price gap on the daily chart. First resistance comes in at Friday’s high of $227.40 and then at $229.50. First support is seen at Friday’s low of $222.80 and then at last week’s low of $220.50.

266.00 — the contract high
235.20 — 10-day moving average
230.00 — 20-day moving average
235.80 — 40-day moving average
172.00 — the contract low

DECEMBER SOYBEAN OIL

December bean oil prices Friday closed sharply higher and near the session high on short covering and on the rebound in crude oil prices. Still, serious chart damage was inflicted last Thursday. To begin to repair the chart damage the bulls will have to push prices above solid technical resistance at 36.35 cents, which would fill on the upside last Thursday’s big downside price gap on the daily chart. Bears’ next downside price objective is pushing and closing prices below solid support at last week’s low of 34.55 cents. First resistance is seen at 36.35 cents and then at 36.50 cents. First support is seen at 35.75 cents and then at 35.25 cents.

39.20 — the contract high
36.99 — 10-day moving average
37.55 — 20-day moving average
37.73— 40-day moving average
22.28 — the contract low