Any room for beans above $10?
Feb 12, 2018
Last Week’s Close: For the week, March corn futures finished up 1 cent, trading in a range of 11 ½ cents. Friday’s Commitment of Traders report showed funds bought back 44,182 futures contracts which puts their net short at 84,872.
Fundamentals: Rains were in the forecast for South America going into the weekend but those never materialized into much which has corn trading higher to start the week. Forecasts are for drier weather through the week. The USD broke down below 90 overnight which also helped offer some support to the commodity space. New crop December is creeping close to $4 which could start encouraging producer activity.
Technicals: Corn futures have been testing resistance from 366 ½-369 over the past few sessions, if the bulls cannot stage a breakout in the first half of the week we would not be surprised to see sellers step in and take advantage of the recent rally. We see first technical support coming in from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Last Week’s Close: March soybean futures finished the week up 5 ¼ cents, trading in a range of 28 ¼ cents. Friday’s Commitment of Traders report showed funds bought back 10,577 contracts, putting their net short at 12,565.
Fundamentals: The market shrugged off last week’s bearish USDA report within a matter of minutes and focused the attention bacon on South American weather and crop development. Rains were in the forecast but did not amount to much, forecasts turn drier through the rest of the week. Soybean meal has also helped pull soybeans higher.
Technicals: Sunday night gaps are to be expected in this type of market environment. The market made a run in to our technical resistance pocket from 1001-1006, this is going to be a big area to watch this week. If the bulls can achieve a close above, we will look for an extension towards 1020-1027. A failure to breakout will invite sellers in who will be looking to fill the gap. First technical support will come in from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Last Week’s Close: arch wheat futures traded higher by 2 ¼ cents on the week, trading in a wide 25 ¾ cent range. Friday’s Commitment of Traders report showed funds bought back 13,276 futures contracts, putting the funds net short position at 78,256 futures.
Fundamentals: It seems the market has moved its focus back to weather which is a growing concern with some severely dry areas. A weaker dollar in the overnight session also added additional support to the market, but that is making a push higher as we head towards the early morning intermission and seems to be putting some pressure back on all the grains.
Technicals: The market opened higher but has come off those highs this morning. We believe that the chart is constructive but feel there is better opportunity for the bulls to buy. First technical support comes in from 438 ¾-441 ¾. Higher lows and higher highs has been the trend, this support pocket will need to hold for that to remain true. On the resistance side of things....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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