Daily Grain Market Commentary (7.24.18)
Jul 24, 2018
Yesterday’s Close: December corn futures finished up 2 ¼ cents, trading in a range of 3 ¾ cents. Funds were estimated buyers of 9,000 contracts on the day.
Fundamentals: Yesterday’s export inspections came in at 1,313,177 metric tons, this was within the range of expectations. Yesterday afternoon’s crop progress report showed the good/excellent rating for U.S. corn was unchanged from last week at 72%, analysts were looking for a seasonal regression. The better than expected ratings led to a softer overnight/early morning trade.
Technicals: The overnight and early morning pull back is welcomed and healthy for the market so don’t get in a tizzy just yet, this will give market participants who tightened things up over the last two sessions an opportunity to step back in at a better price. Significant support comes in from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Yesterday’s Close: November soybeans closed 2 ¾ cents lower, trading in a range of 7 ¾ cents. Funds were estimated sellers of 3,000 contracts on the day.
Fundamentals: Export inspections yesterday morning came in at 722,048 metric tons, this was within the range of expectations. The weekly crop progress report from the USDA showed that the good/excellent conditions for U.S. soybeans are at 70%, this is up 1% from the previous week. Analyst were looking for steady to slightly lower, the better than expected conditions have the market under pressure in the early morning trade.
Technicals: The market had a much-needed relief rally last week, so a minor pullback is healthy and to be expected. With that said, market conditions are still uneasy, so the bulls need to make sure it’s nothing more than “minor”. If the bulls can defend technical support this week, we could see this turn from a relief rally to a sustainable rally. Our technical resistance pocket held yesterday, we had outlined that in previous reports as 866 ¾-872. On the support side of things, the bulls desperately need to defend....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Yesterday’s Close: September wheat futures finished yesterday’s session down 3 cents, trading in a range of 10 ½ cents. Funds were estimated sellers of 3,000 contracts.
Fundamentals: Export inspections yesterday morning came in at 397,862 metric tons, this was within the range of expectations. Yesterday’s crop progress report showed that spring wheat is rated at 79% good/excellent, this is down 1% from the previous week. Winter wheat harvest is now 80% complete, a pickup of 6% over the last week. If corn and beans continue to peel back, that could spill over into the wheat pit.
Technicals: The market could not get enough momentum to get out above our technical resistance pocket from 522 ¼-524 ½. The market is now trading back below our pivot pocket which we have defined as 510 ½-514 ½, this will be significant on today’s close. A close below opens the door for another leg lower. The next pocket comes in from 496 ½-500. We are working with clients who got short Friday and yesterday to take some risk off the table. We are doing that by....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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