Buy the dip in grains?

Published on: 12:55PM Oct 17, 2018

Corn (December)

 

Yesterday’s Close:  December corn futures finished yesterday’s session down 2 cents, trading in a range of 4 cents.  Funds were estimated sellers of 12,000 contracts on the day.

 

Fundamentals:  Corn futures gave back some premium yesterday as forecasts call for drier weather through areas that were hit by wet/winter conditions.  It may take a few days for things to dry out but farmers who were delayed are expected to get the combines rolling again soon.  There are no major news events scheduled in the near future, so weather, harvest, and money flow will be the main focus for the remainder of the month.

 

Technicals:  Yesterday’s pullback was a healthy one and we would welcome a little bit more of a pull back.  Previous resistance now becomes first technical support, we are looking at the pocket from 370-373 as a must hold area for the bulls.  A break below, followed by consecutive closes below will neutralize the bullish chart.  If the bulls can defend support, we expect to see this market continue to march higher.  The next meaningful resistance pocket doesn’t come in until....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

Soybeans (November)

 

Yesterday’s Close:  November soybean futures finished yesterday’s session down 7 ¾ cents, trading in a range of 12 cents.  Funds were estimated sellers of 6,000 contracts on the day.

 

Fundamentals:  November soybean futures pulled back yesterday on a better weather outlook for those who have been plagued by wet/winter weather over the past week plus.  Harvest is well behind the average pace for this time of year, but the break in weather should get the combines rolling again here in the next few days, if not already.  We will continue to keep an ear to the ground for any developments regarding U.S. and China trade talks, this continues to be a wild card.  This is the time of year were our exports start to ramp up, bulls are hopeful that this trend will continue this year. 

 

Technicals:  The market retreated yesterday after stalling out near our resistance pocket which we have had defined as 889-892 ¾.  The pull back is healthy in nature and we would not be surprised to see it continue a little further.  Previous resistance from 870 ¾-875 now becomes first technical support.  If you want to be long the market, this is a spot to look at the buy side.  A break and close below will....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

Wheat (December)

 

Yesterday’s Close:  December wheat futures finished yesterday’s session down 1 ½ cents, trading in a range of 6 cents.  Funds were estimated sellers of 4,000 contracts on the day.

 

Fundamentals:  Wheat futures had a slight pullback yesterday on a little spillover from weakness in corn and beans, not to mention we failed at technical resistance (again).  Exports have been fairly weak recently which has our expectations limited, but a move higher in corn and beans would be beneficial for wheat prices.  We continue to like the sell side of wheat but will be patiently waiting for better prices.

 

Technicals:  Wheat failed at our technical resistance pocket from 523 ½-528, this has been the gift that keeps on giving for the shorts.  As mentioned above, we like the sell side of wheat but were less aggressive against resistance as we wait to see if we can’t see higher prices on the back of corn and beans being constructive.  If the bulls can chew through resistance, we could see the market run another....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

 

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.