July 30, 2009
Technical Analysis: US corn, wheat futures
December corn on Tuesday (July 29) closed weaker and near the session low. Buying interest in corn was limited by bearishly postured "outside markets" - lower crude oil and stock index futures prices and a firmer US dollar.
Corn prices are also still in a two-month-old downtrend on the daily bar chart.
The corn bulls' next upside price objective is to push prices above solid technical resistance at US$3.56 3/4 a bushel, which would fill on the upside a downside price gap on the daily bar chart.
The next downside price objective for the bears is to push and close prices below solid technical support at the contract low of US$3.14 3/4 a bushel.
First resistance for December corn is seen at last week's high of US$3.40 and then at US$3.45. First support is seen at $3.25 and then at this week's low of US$3.23 1/4.
US$3.14 3/4 --- the contract low
December Chicago wheat on Tuesday closed weaker and nearer the session low. Wheat bears have the solid overall near-term technical advantage. Prices have been trading sideways at lower levels for four weeks now.
Wheat was pressured by bearishly postured "outside markets" Tuesday - lower crude oil and stock index futures prices and a firmer US dollar.
The next downside price objective for the bears is pushing and closing prices below solid technical support at the July low of US$5.38. Bulls' next upside price objective is to push and close July futures prices above solid technical resistance at the July high of $5.80 a bushel.
First resistance is seen at Tuesday's high of US$5.55 1/2 and then at US$5.65. First support lies at Tuesday's low of US$5.42 and then at US$5.38.
US$4.91 ------- the contract low
December KCBT wheat on Tuesday closed weaker and nearer the session low. Bears still have the solid near-term technical advantage.
The bulls' next upside price objective is pushing prices above solid technical resistance at last week's high of US$5.92 1/2. The bears' next downside objective is pushing and closing prices below solid technical support at the July low of US$5.60 1/2.
First resistance is seen at Tuesday's high of US$5.78 and then at US$5.87. First support is seen at this week's low of US$5.64 and then at US$5.60 1/2.
US$4.60 ------- the contract low
