Daily Grain Technicals & Fundamentals (12.26.18)

Published on: 14:01PM Dec 26, 2018

Grain Express

 

December 26, 2018

 
 

 Corn (March)

 

Fundamentals:  Markets open at 8:30 cst this morning after being closed for Christmas.  Participation is expected to be light, through the remainder of the week and into next week.  Due to the government shutdown, weekly export data will not be released. 

 

Technicals:  Corn managed to rally off of the lows on Monday, but the volume was fractional of a regular trading day.  Due to the light volume trade, we are taking price action with a grain of salt.  Key technical support for the remainder of the week comes in from 372 ½-374 ¾.  This pocket represents recent lows and the 50% retracement from the September lows to the October highs.  On the resistance side of things, the bulls want to reclaim ground above 380-382, this was the original breakdown point from Thursday, along with a key retracement. 

 

Bias: Bullish/Neutral

 

Resistance: 380-382**, 386-387 ¾***, 390 ½-392 ½****

Support: 372 ½-374 ¾***, 366 ¾-368 ½****

 

Soybeans (March)

 

Fundamentals:  Markets open at 8:30 cst this morning after being closed for Christmas.  Participation is expected to be light, through the remainder of the week and into next week.  Due to the government shutdown, weekly export data will not be released.  Market participants will continue to keep an ear to the ground regarding Chinese trade/soybean purchases.  With January options off the board, attention will shift to the March contract. 

 

Technicals:  The market held support from 889-891 ¾, this pocket represents trendline support from the October 29th and November 26/27th lows.  This pocket also contains the 100-day moving average and a key retracement on the year.  A break and close below here opens the door for a run back below 880.  Bulls want to repair damage done from Thursday and achieve a close back above the psychologically and technically significant $9.00 handle. 

 

Bias: Bullish/Neutral

 

Resistance: 907 ½-908 ¼***, 921 ¾-925***, 936-941****

Pivot: 900

Support: 889-891 ¾***, 871 ¼-875**, 858-862****

 

Wheat (March)

 

Fundamentals:  Markets open at 8:30 cst this morning after being closed for Christmas.  Participation is expected to be light, through the remainder of the week and into next week.  Due to the government shutdown, weekly export data will not be released.  Wheat futures rolled over in the back half of last week on spillover weakness from corn and beans, along with technical pressure. 

 

Technicals:  The market had a technical failure on Thursday, breaking below technical support near 521, triggering a wave of heavy selling.  Previous support not becomes resistance, bulls must reclaim 521 on a closing basis to get the market working back north.  On the support side of things, the bulls want to defend 510-511.  A close below here would likely lead to additional pressure and take us back near the psychologically and technically significant $5.00 handle. 

 

Bias: Bullish/Neutral

 

Resistance: 521**, 530**, 540 ¾**

Support: 510-512****, 499-503 ¾***

 

 

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