CHICAGO | Fri May 11, 2012 3:47pm EDT

May 11 (Reuters) – Bart Chilton, a commissioner at the Commodity Futures Trading Commission, said on Friday the agency should institute a 30-day public comment period on a plan by CME Group to increase trading hours for grain futures and options.

The planned shift to nearly around-the-clock trading at CME’s Chicago Board of Trade, which dominates agricultural markets, has become the most contentious issue among grain traders as it will keep markets open during key U.S. Department of Agriculture crop reports that often cause sharp swings in futures prices.

“These markets have operated for a long time and have been closed when significant USDA announcements have taken place,” Chilton told Reuters. “We could use a little feedback from the industry and the public.”

Two top U.S. grain groups have urged the CFTC to institute a 30-day public comment period on plans for 22-hour trading at the CBOT and rival IntercontinentalExchange.

CME, which currently trades grain futures and options 17 hours a day during the week, plans to increase trading to 22 hours as of May 21.

ICE is slated to launch new grain contracts on Monday with 22-hour trading. The contracts are not expected to attract significant volume.

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December Corn Futures
This past week, fund liquidation pushed values down to the secondary support zone of 5.00-5.05 vs. December futures. The next support level lies down at 4.90 then 4.795. Most technical indicators are well oversold and some even attempting to turn back up. If futures can move back into the 5.20 area it would be a first step in a rebounding effort.

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July Soybean Futures
Technically, the uptrend in the July contract was inflicted severe damage this past week as prices closed below the previous swing low point of 14.095 posted on April 18th and implies that this current bull move is over. Prices also closed below the key 40 day moving average for the first time since the January 2012 USDA report was issued. Several technical indicators are well oversold but additional downside can’t be ruled out. The next major support level is in the 13.50-60 area. Initial resistance is the 40 day moving average at 14.27 with additional resistance at 14.60.

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November Soybean Futures
Even though the November futures contract suffered additional damage this week, it will take a close below 12.98 to technically end the current uptrend. Near term resistance begins at 13.50 followed by additional resistance at 13.84.

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July Wheat Futures
The July contract respected trendline support this past week. Initial resistance is at 6.07 followed by additional resistance at 6.22. There is a line of support near 5.90 and secondary support then comes in at 5.68. Both daily and weekly cycle studies indicate that this market is due to rebound.

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December Corn
December corn futures posted a new low for the year this past week and broke trendline support in the process. The good news is that prices rebounded well off the lows and closed back above the trendline support zone.  Near term resistance is now at 5.32 with secondary resistance at 5.50  The next support zone exists in the 5.00 to 5.05 area.

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July Soybeans
After making a new contract high this week at 15.125, the market then posted a technical reversal lower and experienced mild downside follow through. Several technical indicators are in the beginning stages of negativity developing. This will be the third time in the past two months that a price correction will have attempted to unfold. The previous two price corrections were challenged by the market bulls and new highs unfolded. Currently, values remain above the key moving averages and the major trendline. If prices begin to pierce these support levels between $14.17-14.60 it will give the bearish crowd the edge.

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November Soybeans
November soybean futures pierced the support trendline this past week but bounced back up. A couple of technical points at 13.46 offer support below the market then the 13.32 area remains a major secondary support zone and a move below there is technically bearish. Otherwise, upside resistance remains very strong at the $14 mark.

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July Wheat
Prompted by the previous weeks positive activity, July futures tried three straight days of trying to crack the 6.55 area and failed. It was all downhill after that as the funds actively drove the prices to a new contract low of 5.995 on Friday. A move back above 6.22 would be beneficial to help stabilize this market. Otherwise, the next support zones are at 5.90 then 5.68.

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December Corn Futures
December corn futures don’t share in the excitement of the nearby futures months as prices continue to be relegated to the same down-trending pattern that has been in effect for the last several months. However, a move over the 5.56 area would be a first step in attempting to reverse this pattern. Strong support currently rests at 5.23.

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July Soybean Futures
July soybean futures scored new contract highs this past week to the highest weekly level since July 2008. There is not much but air between the next weekly chart resistance at 15.96 and the 2008 weekly chart high of 16.63. Nearby support now exists at a gap area of 14.81 then 14.63.

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Weekly Soybean Futures
On the weekly soybean chart, the trendline resistance is currently at 15.96 followed by the 08 weekly chart high at 16.63.

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November Soybean Futures
For the most part since the prior weeks low tested the major support trendline, November soybean futures values trailed behind the leading of the July contract. However, during this past week, values have emerged to the upside of a flag formation which is normally friendly. Major resistance remains at the contract high of 14.00 while trendline support currently rests at 13.51. A move below the previous swing low of 13.32 would have bearish implications.

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July Wheat Futures
July wheat futures followed the lead of the nearby corn contracts higher this past week. Market strength on Friday was technically positive as prices eclipsed the previous swing high and also closed above the key moving average areas. Trendline resistance now exists at 6.68 followed by the March high of 6.80. Initial support now is at 6.24 followed by the April low of 6.09.

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December Corn Futures
Once again, December corn futures remain in a congestion mode within an overall down-trending pattern. Initial resistance is between 5.51-5.56 with support being the March low of 5.23.

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July Soybean Futures
July soybean futures erratic volatile behavior continues at the high price range for the year. The technical condition has been warning of an impending correction of which the market bulls have been fending off. Friday afternoons rally to a new high for the year opens the door for a challenge of the contract high of 14.70. This past week, values did drop down and test the support trendline before rallying. Trendline support is now being offered in the 14.15 area.

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November Soybean Futures
In a somewhat conservative manner, November soybeans bearish divergence manifested itself this past week by testing trendline support at the weeks low of 13.32. As long as values remain above trendline support and the 40 day moving average the major uptrend should remain intact. For a couple of days this week, the bears did have the market on the ropes but failed to cause anything but a minor disturbance. Major resistance remains at the contract high of 14.00 while trendline support now moves to 13.41. A close below 12.98 would technically be damaging to the current uptrend.

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July Wheat Futures
A new contract low was posted this past week as values dropped below the December low of 6.13. The technical condition remains in a negative mode, but the momentum indicators appear to be moving to the upside suggesting that a recovery effort of sorts is attempting to unfold. There is an area of resistance between 6.48-6.53 with support now being at 6.09.

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December Corn Futures
December corn futures continue to chop within the confines of a descending triangular formation with a negative bias. Resistance is at the weeks high of 5.56 then the March high of 5.75. Major support is the March low of 5.23.

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May Soybean Futures
Once again May soybeans are exhibiting bearish divergence with this weeks high compared to the late March high. A close below 14.15 will confirm and likely lead to further price declines. Several technical momentum indicators are once again rolling over to the downside as has been the case the past couple of months but the bull run has disregarded them. Resistance is at the weeks high of 14.52 then the contract high of 14.685. Initial support is at 14.15 then 14.01.

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November Soybean Futures
The November futures bean chart is also displaying bearish divergence once again. Several technical warning signals are appearing on the chart and just like the May contract, it is awaiting confirmation. A move below this past weeks low of 13.55 would increase the possibility of an additional decline to test major trendline support at 13.28. Major resistance remains at the contract high of 14.00.

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July Wheat Futures
After an early week high, prices chopped their way to the lower end of the same overall down-trending pattern that has been in effect since the first of February. Trendline support is at 6.19 with moving average resistance at 6.51 and trendline resistance at 6.73.

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December Corn Futures
December futures also saw follow through upside action this past week. Technically the market remains in a negative mode, but the bearish momentum has declined. Initial resistance is now at 5.58 and last weeks low of 5.23 acting as support.

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May Soybean Futures
May bean futures spent the majority of the week consolidating after the bullish USDA report was issued the prior week. A move above the 14.37 area would be followed by resistance at 14.56 then the contract high of 14.685. Initial support is at 14.01followed by the 18 day moving average of 13.77.

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November Soybean Futures
This past week, November beans also experienced consolidating action after the post USDA report surge. Obvious resistance is the contract high at 14.00 with nearby support beginning at 13.60. Another layer of support is in the 13.35-45 range with major trendline support at 13.17.

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July Wheat Futures
July wheat futures continue to respect trendline resistance which is now at 6.76 as the market continues to chop in a rather wide range with a negative bias. The technical signals are mixed with last weeks low of 6.26 offering some support.

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The market will now do its best for the next 2 months to try to “shock” producers back into planting more soybeans. The market began its invitation on Friday and is likely to continue that “sweet talking” right until the end of May. So until the end that we will call the confirmation of June final acreage numbers, expect the corn acreage number of 95.9 ma and the bean acreage number of 73.9 to be the most negative in terms of corn, and the most friendly in terms of soybeans, that we will see this Spring. The trade simply will not allow these numbers to be planted and prices will adjust accordingly to see that the US producer sits up and takes notice and rewards the market accordingly, with less corn and more soybean acreage. We shall see at the end of June when final numbers are reported.

The corn stocks numbers of 6.01 bb of corn in the US on March 1 was another surprising component of the report. Estimates going in were approximately 150 mb higher than USDA reported. This implies a slightly better feeding rate than what was has been suggested, and the drum beating for more Chinese corn imports sets up more fireworks for old crop corn versus new crop corn. Could old crop ending stocks be headed toward 500-600 mb, not 800 currently projected. Producers would be advised to trade old crop corn as a completely different commodity versus new crop corn. They are more like apples and oranges, and Friday’s report make their future trading characteristics even less like each other.

Should 95.9 ma acres be planted, it is suggested we are already discounting a 155-156 type national yield at these new crop values. Certainly, new crop corn values were less excited than the broader grain market with this kind of acreage number. Bottomline, the market can tolerate more weather concern should this acreage be realized. Technically, the entire grain market had adjusted negatively in days leading up to Friday’s report, so the positive jump in the trade even allowed new crop corn prices to benefit from the excitement.