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Daily Grain Technicals & Fundamentals (8.23.18)

Published on: 13:10PM Aug 23, 2018

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Corn (December)

 

Yesterday’s Close:  December corn futures finished yesterday’s session down 7 cents, trading in a range of 7 ¼ cents. 

 

Fundamentals:  Corn market continued to slide lower yesterday as reports from crop tours continued to verify what the USDA told us on August 10th, and that is that we have a big crop on our hands.  The ProFarmer tour will continue through today and they plan on releasing final numbers tomorrow afternoon.  Yesterday’s weekly EIA ethanol report showed production increased by .001, to 1.073 million barrels per day.  Export sales this morning came in at 173,400 metric tons of old crop and 1,054,000 metric tons of new crop.

 

Technicals:  For the past week we have been discussing the fact that the market looks tired and a break below the 50-day moving average would likely encourage a run towards 366 ¼-369.  The market is now testing the bottom end of the range and is threatening to completely break down.  Trust me, we want to be friendly the market, but we do not see any compelling reason to be so right now.  If the bulls cannot defend this pocket as we wrap up the week, you can expect to see....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 14 ¼ cents, trading in a range of 16 cents. 

 

Fundamentals:  The market has been searching for new bullish news to help propel this market above technical levels but has failed miserably this week.  Crop tours continue on and continue to confirm what many of us had suspected, and that is a great looking crop.  Reports of the US Farmer Aid Package are suggesting a payment of $1.65 per bushel for beans.  Export sales this morning came in at 152,700 metric tons of old crop and 1,148,000 metric tons of new crop.

 

Technicals:  Trying to paint a bullish picture with the current market landscape is a task to say the least.  Fundamentals weigh heavy and that has been confirmed with the past week of trade.  The inability to hold ground above $9.00 marked lower highs for the third time in a month which leaves the market susceptible for lower lows.  The market is now trading in our 4-star support pocket from 860 ¼-866.  If you have been short, this is a spot to reduce.  If the bulls cannot defend this level to finish the week, we will likely see....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 ¾ of a cent, trading in a range of 12 ½ cents.

 

Fundamentals:  The market continued to breakdown early yesterday on the lack of new bullish news to support prices, this is something we have been talking about for a few weeks now.  We continue to believe that the broader fundamentals will at the very least keep a lid on any significant rally.  Export sales this morning came in at 239,800 metric tons, a rather dismal number (shocker).

 

Technicals:  A blind squirrel finds a nut every now and again, and yesterday’s excerpt in our Grain Express was just that: “The market is now testing our 4-star support pocket which we have had defined as 539 ½-540 ½. This is the spot for the bears to reduce some exposure.”.  Previous support now becomes resistance, so 555-557 ¾ is the pocket for bears to look at putting that exposure back on.  A break and close below 538 ½ will likely encourage additional long liquidation from the funds.  The next target/support pocket comes in from....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

 

If you have any questions or would like to discuss the markets in more depth, please do not hesitate to call or email.

 

Oliver@BlueLineFutures.com

Direct: 312-837-3938

 

 

 

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

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