DowntownForex

US Corn, Wheat Futures – June 11: Technical Analysis

BY Jim Wyckoff

July corn on Wednesday closed lower and near the session low. The key “outside markets” were mostly bearish for the corn futures market, as the U.S. stock indexes were lower and the U.S. dollar was higher. Wednesday’s USDA supply and demand report was deemed neutral to friendly for corn, but the market could gain no lasting support from it as traders “sold the fact.” Corn bulls still have the overall near-term technical advantage. However, prices have been trading choppy and sideways for the past week. Prices are still in a six-week-old uptrend on the daily bar chart, but now just barely.  The bulls’ next upside price objective is to push and close prices above solid technical resistance at last week’s high of $4.50 a bushel. The next downside price objective for the bears is to push and close prices below solid technical support at $4.21 3/4 a bushel. First resistance for July corn is seen at $4.40 and then at $4.45. First support is seen at this week’s low of $4.34 3/4 and then at $4.30.

$8.26 ——– the contract high
$4.40 ——- 10-day moving average
$4.32 3/4 — 20-day moving average
$4.15 3/4—- 40-day moving average
$3.15 3/4 — the contract low

JULY CBOT WHEAT

July Chicago wheat on Wednesday closed lower, nearer the session low and hit a fresh three-week low. The key “outside markets” were mostly bearish for the wheat futures market Wednesday, as the U.S. stock indexes were lower and the U.S. dollar was higher. Bears have regained the slight near-term technical advantage in wheat. The next downside price objective for the bears is pushing and closing prices below solid technical support at $5.63 1/4. The bulls’ next upside price objective is to push and close July futures prices above solid technical resistance at $6.35 a bushel. First resistance is seen at $6.00 and then at Wednesday’s high of $6.17 1/4. First support lies at Wednesday’s low of $5.92 and then at $5.80.

$11.44 3/4 — the contract high
$6.29 1/2 — 10-day moving average
$6.13 3/4 — 20-day moving average
$5.80 1/4 — 40-day moving average
$4.48 ——– the contract low

JULY KCBT WHEAT

July KCBT wheat on Wednesday closed lower, nearer the session low and hit a fresh three-week low. Bears have regained the slight near-term technical advantage. The bulls’ next upside price objective is pushing prices above psychological resistance at $7.00. The bears’ next downside objective is pushing prices below solid technical support at $6.25. First resistance is seen at this week’s high of $6.69 1/4 and then at $6.75. First support is seen at Wednesday’s
low of $6.44 and then at this week’s low of $6.25.

$11.35 ——– the contract high
$6.81 3/4 — 10-day moving average
$6.65 1/2 — 20-day moving average
$6.29 3/4 — 40-day moving average
$4.60 ——– the contract low

(Jim Wyckoff is a technical analyst and the proprietor of the analytical and
educational advisory service, “Jim Wyckoff on the Markets.” He does not trade
commodity futures. His email address is jim@jimwyckoff.com, Tel:
1-319-277-8643.)

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