Yesterday’s Close: December corn futures finished Friday’s session down 5 cents, trading in a range of 6 ¼ cents.
Fundamentals: December corn continued to work lower yesterday in the absence of any bullish news, that coupled with a technical breakdown has the bears in a very comfortable spot. As the combines start to roll we are getting confirmation of big yields coming. Some of the pressure on the board may be from producers selling grain to make room in the bins for this year’s big crop. Low prices cure low prices, but we feel think it could get worse before it gets better.
Yesterday’s Close: November soybean futures finished Friday’s session down 10 ¾ cents, trading in a range of 13 cents.
Fundamentals: Soybeans continued to work lower yesterday along side corn as combines begin to roll and bullish headlines remain few and far between. Yesterday President Trump did say: If China retaliates against U.S. Farmers, will consider imposing $257 billion in additional tariffs. This provided a quick 4 cent pop but was not enough to encourage additional short covering. As with corn, low prices cure low prices, but we feel think it could get worse before it gets better.
Techncials: The market has made new lows this week, proving once again that the only thing you get from picking bottoms is stinky fingers. Previous support now becomes resistance, we see that coming in from 821 ¾-826 ¼. If the bulls can reclaim ground above here we could see short covering ensue, until then, the bears have a firm handle on the market. We are in uncharted territory, so finding the next meaningful support pocket becomes more difficult. The next obvious target would be....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
Yesterday’s Close: December wheat futures finished yesterday’s session up 3 ¼ cents, trading in a range of 8 cents.
Fundamentals: Wheat managed to rally slightly over 3 cents on what was mostly some light short covering, not concerns over tightening global supplies like some analysts were suggesting yesterday. We know that supplies are plentiful, and demand is dismal, this will likely keep a lid on any significant rally. The lack of new news on the wires has our focus on technicals this week.
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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.