Daily Grain Technicals & Fundamentals (10.4.18)

Published on: 12:53PM Oct 04, 2018

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Corn (December)

 

Yesterday’s Close:  December corn futures finished yesterday’s session down 3 cents, trading in a 4 ½ cent range. 

 

Fundamentals:  Yesterday’s weekly EIA ethanol report showed production fell to 1.015, from 1.036 million barrels per day.  Even with the drop, overall production is still up on the year.  Export sales this morning came in at 1,431,000 metric tons, this was a strong number.

 

Technicals:  The market is consolidating between key technical indicators, the inability to stage a breakout or a breakdown in the first half of the week keeps many of those levels in play yet again today.  We have had 366-369 ¾ listed as resistance for multiple weeks now and we have been trading here for the better part of the last week.  A close above this pocket could encourage additional long liquidation from the funds, the next resistance pocket doesn’t come in until 375 ¾-377 ¼, this pocket represents the 100-day moving average and a key retracement on the year.  On the support side of things....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 5 ¼ cents, trading in a range of 9 ¾ cents. 

 

Fundamentals:  Soybean futures are consolidating at the top end of resistance as market participants await new news to give them more conviction in direction.  Export sales this morning came in at 1,521,200 metric tons, a very strong number.  There will continue to be a lot of attention on harvest, it is possible that we see some premium come into the market ahead of the weekend.  If we do see a premium into the weekend, it will likely make for an interesting Sunday night open. 

 

Technicals:  The market feels like it’s building up for a bigger directional move.  With the market consolidating in the first half of the week, the technicals have not changed much.  870 ¾ is a key retracement on the year, a conviction close above this level could spark another round of short covering which could open the door for a run at....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 5 cents, trading in a range of 13 cents.

 

Fundamentals:  The wheat market gave back some of the gains on the back of headlines regarding the potential closure of Russian ports, this should not have come as a surprise to anyone.  There are some global weather concerns that could keep the market elevated here in the near term, but any big pops will likely be sold into.  Export sales this morning came in at 435,300 metric tons, this was inline with expectations. 

 

Technicals:  The market failed against our technical resistance pocket from 523 ½-526, this pocket represents a key retracement on the year and the 200-day moving average.  The failure here also marks lower highs, which leaves the door open for lower lows.  If prices work back towards the top end of this pocket before the end of the week, that would neutralize the chart and put the bulls in a good position into the weekend.  On the support side of things, we have an eye on....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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