Yesterday’s Close: December corn futures finished yesterday’s session up 2 ½ cents, trading in a range of 5 ¼ cent. Funds were estimated to have been buyers of 11,000 contracts on the session.
Fundamentals: Corn futures managed to stage a relief rally yesterday with some follow through coming in on the overnight session. In order for the this to become more than a relief rally the bulls will need help from headlines and technicals. Forecasts that we are watching have moisture being pushed out which means we could see hot and dry continue, if this plays out we will certainly start to hear “drought” rumors pick back up rather quickly. We will also keep an ear to the ground on continuing trade talks as that will likely have an immediate affect on near term price discovery.
Technicals: December corn futures pressed the up against resistance from 404 ½-405 ½ but failed to close above which keeps this chart in check. If the bulls can achieve a close above this pocket, we would expect to see this relief rally continue towards....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 soybean futures finished yesterday’s session up ¾ of a cent, trading in a range of 10 ¼ cents. Funds were estimated to have been sellers of 2,000 contracts for the day.
Fundamentals: The market is continuing to digest headlines revolving around global trade. We expect to see the volatility continue with these headlines until we get something more substantive. Weather is a concern for corn and wheat right now and we could see some of that money flow spill over into the bean market. There is a USDA report next week which could also encourage market participants to tie up loose ends.
Technicals: Yesterday’s choppy session that finished near unchanged did little to help or hurt the technicals. First technical support from 1013 ¾-1015 ¾ held on the first test, another test would likely give way to a breakdown. The next significant support pocket doesn’t come in until....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: July wheat futures finished yesterday’s session up 2 ¼ cents, trading in a range of 12 ¾ cents. Funds were estimated sellers of 2,000 contracts for the day.
Fundamentals: As harvest continues to roll on, there are some reports that the winter wheat crop may not be as bad as previously thought which has kept a lid on the market over the last week. With that said, there are new concerns arising with regards to the global wheat crop; in particular the Black Sea region and Australia where hot and dry conditions are threatening yield potential.
Technicals: Chicago wheat has managed to hold support near the $5 handle very well which actually has the chart looking rather constructive. If the bulls can reclaim and close above 523, this market could continue to work higher. We know that funds have been adding length to wheat after holding a net short position for what seemed to be a lifetime. A close above technical resistance would likely encourage that more momentum traders to step in to the market. From the technical perspective the risk reward favors the bulls here, for other reasons besides technicals we are bearish, so we have put our bias at near term neutral.
Resistance: 523****, 534 ¾-538***, 543 ½-545**
Support: 498 ¼-502 ¾***, 491**, 477 ½-481 ½****
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