Daily Grain Market Update (7.25.18)
Jul 25, 2018
Yesterday’s Close: December corn futures finished yesterday’s session 4 cents lower, trading in a range of 5 ¼ cents. Funds were estimated sellers of 9,000 contracts.
Fundamentals: Better than expected crop ratings in Monday afternoon’s crop progress report triggered profit taking yesterday. This pull back gave traders who tightened things up recently an opportunity to get exposure back on at a better price. The market has found footing in the early morning trade on spillover strength from the wheat complex. Bulls will want to see volume confirm price on the floor open. USDA Secretary Sonny Perdue announced a $12 billion farmers aid program to help ease the pain of soybean tariffs, an indication that President Trump is unlikely to give ground on his stance. Though the package doesn’t include corn, you will see some spillover. Here’s the link to the official statement: USDA Assists Farmers Impacted by Unjustified Retaliation.
Technicals: Not much has changed on the technical front over the last 24 hours as the market continues to trade in between our technical support and resistance levels. On the support side, the bulls need to defend 358 ½-360 ½. A break below here opens the door for a retest of 350, from here we would expect the market to come into a more defined range trade. On the resistance side of things....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
Yesterday’s Close: November soybeans finished yesterday’s session up 10 ¾ cents, trading in a range of 21 cents. Funds were estimated buyers of 8,000 contracts.
Fundamentals: Soybeans started yesterday’s session under pressure due to better than expected crop ratings, but prices started to work back higher on the floor open. Much of the strength came from the Administration’s release of a $12 billion farmers aid program to help ease the burden of low prices due to retaliatory soybean tariffs. Here’s the link to the official statement: USDA Assists Farmers Impacted by Unjustified Retaliation.
Technicals: Soybeans squeaked out a close above resistance at 872, the bulls will want to see more conviction with today’s price action to confirm. If the bulls can maintain strength above this level, we would not be surprised to see the market extend the rally towards the technically and psychologically significant pocket from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
Yesterday’s Close: September wheat futures finished yesterday’s session down 1 ¾ cents, trading in a range of 11 cents. Funds were estimated sellers of 1,000 contracts.
Fundamentals: The market is picking up steam this morning as the wheat tour marches on. Minneapolis wheat leads the way for Kansas City and Chicago contracts as they post their highest prices in over a month. If volume on the floor open can confirm price action it may change the technical landscape (see technicals below)
Technicals: The market found support yesterday at 505, a level that was previously trendline resistance. The market finished the day in our pivot pocket and is accelerating higher today. Higher lows and higher highs is a trend changer, the bulls want to see volume confirm price on the floor open. Our resistance pocket from 522 ¼-524 ½ is being tested today, a breakout and close above could encourage additional buying towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
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