Soy Complex, Grain Futures - August 27, 2007

by Jim Wyckoff, Senior Analyst TraderPlanet.com

DECEMBER CORN

Chicago Board of Trade December corn prices Friday closed lower and near the session low. Late last week’s price action did produce a buying “exhaustion tail” on the daily bar chart, whereby the bulls became exhausted at higher price levels and then prices backed well off the weekly high. Last week’s high of$3.72 is strong overhead resistance for the bulls to overcome. The next downside price objective for the bears is to close prices below solid support at $3.50. First resistance for December corn is seen at Friday’s high of $3.62 1/2 and then at$3.65. First support is seen at Friday’s low of $3.58 and then at $3.55.

4.31 ——– the contract high
3.51 1/4 —10-day moving average
3.48 1/2 —- 20-day moving average
3.46 1/4 — 40-day moving average
2.48 ——– the contract low

DECEMBER CBOT WHEAT

CBOT December wheat prices Friday closed at a fresh contract high close. There are still no early technical clues of a market top being close at hand. The bulls’ next upside price objective is to push and close prices above resistance at last week’s contract and all-time high of $7.54 a bushel. The next downside price objective for the bears is closing prices below strong psychological support at $7.00 a bushel. First resistance is seen at Friday’s high of $7.43 and then at $7.54. First support lies at Friday’s low of $7.34 and then at $7.24.

7.54 ——– the contract high
7.08 1/4 — 10-day moving average
6.91 ——– 20-day moving average
6.60 3/4 — 40-day moving average
3.86 ——– the contract low

Source: VantagePoint Intermarket Analysis Software

DECEMBER KCBT WHEAT

December Kansas City wheat prices Friday closed higher and near the session high and closed at a fresh contract high close. Wheat bulls still have the technical advantage amid no signs of a market top. The all-time high in nearby HRW wheat futures is$7.44. Bulls’ next upside price objective is closing prices above solid resistance at last week’s contract high of $7.00 a bushel. The bears’ next downside objective is closing prices below solid support at $6.70 a bushel. First resistance is seen at the contract high of $7.00 and then at $7.10. First support is seen at Friday’s low of $6.84 and then at $6.80.

7.00 ——– the contract high
6.76 1/4 — 10-day moving average
6.67 3/4 — 20-day moving average
6.44 1/2 —- 40-day moving average
4.16 ——– the contract low

NOVEMBER SOYBEANS

November soybean prices Friday closed higher, near the session high and closed at the weekly high close, giving the bulls some better upside technical momentum heading into the new trading week. The next upside price objective for the bulls is pushing prices above solid technical resistance at $8.70. The next downside price objective for the bears is closing prices below solid support at $8.50. First resistance for November soybeans is seen at last week’s high of $8.67 and then at $8.70. First support is seen at $8.60 and then at Friday’s low of $8.54.

9.49 1/2 — the contract high
8.47 1/4 — 10-day moving average
8.54 1/4 — 20-day moving average
8.69 1/4 — 40-day moving average
5.95 ——– the contract low

DECEMBER SOYBEAN MEAL

CBOT December soymeal prices Friday closed higher, near the session high and closed at the weekly high close, giving the bulls some better upside technical momentum heading into the new trading week. The next upside price objective for the meal bulls is to close prices above solid resistance at the August high of $245.30. The next downside price objective for the bears is closing prices below solid support at $234.00. First resistance comes in at last week’s high of $242.50 and then at $245.30. First support is seen at Friday’s low of $237.40 and then at $235.00.

266.00 — the contract high
234.30 — 10-day moving average
232.60 — 20-day moving average
236.50 — 40-day moving average
172.00 — the contract low

DECEMBER SOYBEAN OIL

December bean oil prices Friday closed higher, near the session high and closed at the weekly high close, giving the bulls some better upside technical momentum heading into the new trading week. A potentially bearish pennant pattern that had formed on the daily bar chart was negated Friday. The next upside price objective for the bulls is pushing prices above solid technical resistance at 37.00 cents. Bears’ next downside price objective is pushing and closing prices below solid support at 35.75 cents. First resistance is seen at Friday’s high of 36.69 cents and then at 37.00 cents. First support is seen at 36.35 cents and then at Friday’s low of 36.00 cents.

39.20 — the contract high
36.14 — 10-day moving average
37.11 — 20-day moving average
37.67— 40-day moving average
22.28 — the contract low