December corn was lower overnight as it consolidates some of this week's short covering rally. Stochastics are neutral to bearish signaling that sideways to lower prices are possible near-term. Monday's close below the 20-day moving average has opened the door for additional profit taking near-term and a possible test of the reaction low crossing at 7.45 1/2. Closes below the reaction low crossing at 7.45 1/2 would confirm that a pre-harvest top has been posted. If December renews this summer's rally into uncharted territory, the July 5th measuring gap projects a potential rally to the 8.54 1/2 area. First resistance is last Friday's high crossing at 8.49. Second resistance is the July 5th measuring gap projection of a potential rally to the 8.54 1/2 area. First support is Monday's low crossing at 7.86. Second support is the reaction low crossing at 7.45 1/2.
December wheat was higher due to short covering overnight as it consolidates some of the decline off last Friday's high. If December extends the decline off last Friday's high, the reaction low crossing at 8.16 1/4 is the next downside target. The high-range close sets the stage for a steady to higher opening when the day session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. Closes above the 20-day moving average crossing at 8.98 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 8.92 1/4. Second resistance is the 20-day moving average crossing at 8.98. First support is Tuesday's low crossing at 8.57 1/4. Second support is the reaction low crossing at 8.16 1/4.
December Kansas City Wheat closed up 14-cents at 8.97.
December Kansas City wheat gapped up and closed higher due to short covering on Thursday as it consolidated some of the decline off last week's high. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If December extends the decline off last week's high, the 38% retracement level of this summer's rally crossing at 8.38 1/4 is the next downside target. Closes above the 20-day moving average crossing at 9.13 3/4 would confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 9.13 3/4. Second resistance is July's high crossing at 9.54 1/4. First support is Tuesday's low crossing at 8.74 1/2. Second support is the 38% retracement level of this summer's rally crossing at 8.38 1/4.
December Minneapolis wheat was higher due to short covering overnight as it consolidates some of the decline off last Friday's high. The high-range close sets the stage for a steady to higher opening when the day session begins trading. Stochastics and the RSI are oversold but are turning neutral to bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 9.54 would confirm that a short-term low has been posted. If December extends the decline off July's high, the 50% retracement level of this summer's rally crossing at 8.84 is the next downside target. First resistance is the 10-day moving average crossing at 9.38 3/4. Second resistance is the 20-day moving average crossing at 9.54. First support is the reaction low crossing at 8.99 1/4. Second support is 50% retracement level of this summer's rally crossing at 8.84.
SOYBEAN COMPLEX
November soybeans were higher overnight and are poised to extend Wednesday's rally. Stochastics and the RSI are turning neutral to bullish signaling that sideways trading is possible near-term. If November renews last week's rally, July's high crossing at 16.91 1/2 then psychological resistance crossing at 17.00 are the next upside targets. Closes below the reaction low crossing at 15.55 1/4 would open the door for a larger-degree decline into fall harvest. First resistance is July's high crossing at 16.91 1/2. Second resistance is psychological resistance crossing at 17.00. First support is the reaction low crossing at 15.55 1/4. Second support is the reaction low crossing at 15.36.
December soybean meal was higher overnight and is poised to extend Wednesday's rally. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Multiple closes above triangle resistance crossing near 492.00 would confirm and upside breakout of this consolidation pattern while opening the door for a possible resumption of this summer's rally. Closes below the reaction low crossing at 467.30 would confirm a major top has been posted and would open the door for a larger-degree decline into fall. First resistance is triangle resistance crossing near 492.00. Second resistance is July's high crossing at 509.80. First support is the reaction low crossing at 467.30. Second support is the reaction low crossing at 454.30.
December soybean oil was higher overnight as it extends this week's trading range. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December renews the rally off last week's low, the reaction high crossing at 55.69 is the next upside target. Closes below the 20-day moving average crossing at 53.12 would temper the near-term friendly outlook. First resistance is the reaction high crossing at 55.69. Second resistance is July's high crossing at 56.00. First support is the 20-day moving average crossing at 53.12. Second support is the 62% retracement level of the June-July rally crossing at 51.44.
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