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Jim Wyckoff's Closing Report: Cattle Markets Close Higher Wednesday

18 September 2013
Jim Wyckoff Commentary -  TheCropSite

US - December live cattle closed up $0.35 at $129.00 Wednesday. Prices closed near the session high. The bulls have the near-term technical advantage at present.

However, there is still the specter of a bearish double-top reversal pattern forming on the daily bar chart, on more price weakness. 

Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at $130.00.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the August low of $126.95.

First resistance is seen at this week's high of $129.52 and then at $130.00. First support is seen at today's low of $128.32 and then at this week's low of $127.97. Wyckoff's Market Rating: 6.0

November feeder cattle closed up $0.40 at $159.00 Wednesday. The feeder bulls have the overall near-term technical advantage.

The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at the August high of $160.85. The next downside price breakout objective for the bears is to push and close prices below solid technical support at last week's low of $158.00.

First resistance is seen at $159.50 and then at $160.00. First support is seen at Wednesday's low of $158.30 and then at $158.00. Wyckoff's Market Rating: 7.0

December lean hogs closed up $0.42 at $87.95 Wednesday. Prices closed near the session high. The hog bulls have the solid near-term technical advantage.

The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at $90.00.

The next downside price breakout objective for the bears is pushing prices below solid technical support at last week's low of $86.60. First resistance is seen at Wednesday's high of $88.00 and then at Monday's contract high of $88.50. First support is seen at $87.00 and then at today's low of $86.85. Wyckoff's Market Rating: 8.0

Grains

December corn futures closed up 2 1/4 cents at $4.56 1/4 Wednesday. Prices closed nearer the session high on tepid short covering after hitting a fresh four-week low early on.

The corn bears remain in firm near-term technical control. Corn bulls' next upside price objective is to push and close prices above solid technical resistance at last week's high of $4.73 1/2.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at the August low of $4.45 3/4.

First resistance for December corn is seen at $4.62 and then at this week's high of $4.68 1/2. First support is seen at Wednesday's low of $4.52 and then at $4.50. Wyckoff's Market Rating: 1.5

November soybeans closed up 5 1/4 cents at $13.47 3/4 a bushel Wednesday. Prices closed nearer the session high on short covering and on a huge USDA export sale of soybeans to China Wednesday.

Soybeans have seen buying interest limited this week by some slightly beneficial rains that have
fallen in the U.S. Corn Belt.

Soybean bulls have the overall near-term technical advantage. The recent higher volatility at higher price levels is a warning signal of a near-term market top.

However, it can also be argued that a big bull flag pattern has formed on the daily bar chart. The next near-term upside technical breakout objective for the soybean bulls is pushing and closing prices above solid technical resistance at $13.80 a bushel.

The next downside price breakout objective for the bears is pushing prices below solid technical support at $13.31 1/2, which is the bottom of an upside price gap on the daily bar chart. First support is seen at $13.31 1/2 and then at $13.25. First resistance is seen at $13.50 and then at
$13.60. Wyckoff's Market Rating: 6.5.

December soybean meal closed down $0.80 at $425.80 Wednesday. Prices closed near mid-range. The meal bulls still have the overall near-term technical advantage. The higher volatility at higher price levels is a warning signal of a topping process in the meal market.

The next upside price objective for the bulls is to produce a close above solid technical resistance at $450.00 last week's contract high of $451.20.

The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at the September low of $415.60. First resistance comes in Wednesday's high of $428.50 and then at $435.00. First support is seen at Wednesday's low of $422.80 and then at $420.00. Wyckoff's Market Rating: 6.5

December bean oil closed up 47 points at 42.71 cents Wednesday. Prices closed nearer the session high and saw short covering in a bear market.

Prices hit another fresh five-week low early on. The bears still have the solid overall near-term technical advantage.

The next upside price breakout objective for the bean oil bulls is pushing and closing prices above solid technical resistance at 44.00 cents. Bean oil bears' next downside technical price breakout objective is pushing and closing prices below solid technical support at the August low of 41.85 cents.

First resistance is seen at Wednesday's high of 42.80 cents and then at 43.00 cents. First support is seen at 42.50 cents and then at 42.25 cents. Wyckoff's Market Rating: 1.5

December Chicago SRW wheat closed up 3 1/2 cents at $6.46 1/2 Wednesday. Prices closed nearer the session high on tepid short covering in a bear market.

The wheat market bears still have the solid overall near-term technical advantage. Wheat will continue to be a follower of corn. Wheat bulls' next upside breakout objective is to push and close Chicago SRW prices above solid technical resistance at the September high of $6.64 a bushel.

The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at the contract low of $6.35 1/2. First resistance is seen at this week's high of $6.52 and then at $6.55. First support lies at Wednesday's low of 6.42 and then at $6.35 1/2. Wyckoff's Market Rating: 1.5.

December HRW wheat closed up 2 1/4 cents at $6.92 1/2 Wednesday. Prices closed near mid-range on tepid short covering.

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 the September high of $7.11 1/4.

The bears' next downside breakout objective is pushing and closing prices below solid technical support at $6.75. First resistance is seen at $7.00 and then at last week's high of $7.04 1/2. First support is seen at the contract low of $6.87 3/4 and then at $6.80. Wyckoff's Market Rating: 1.0

December oats closed down 3 cents at $3.03 3/4 Wednesday. Prices closed nearer the session low and hit another fresh contract low.

Bears have the solid near-term technical advantage. Bears' next downside price breakout objective is pushing and closing prices below solid technical support at $3.00. Bulls' next upside price breakout objective is pushing and closing prices above solid technical resistance at last week's high of $3.25 3/4.

First support lies at Wednesday's contract low of $3.03 and then at $3.00. First resistance is seen at Wednesday's high of $3.09 1/4 and then at this week's high of $3.16. Wyckoff's Market Rating: 1.0

TheCattleSite News Desk

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.



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