Daily Livestock and Grain Technicals/Fundamentals

Published on: 12:50PM Aug 17, 2018

Corn (December)

 

Yesterday’s Close:  December corn futures finished yesterday’s session up 4 cents, trading in a range of 7 cents.  Funds were estimated buyers of 14,000 contracts.

 

Fundamentals:  The grain markets continue to be encouraged by the prospects of a trade deal with China in the coming weeks.  This primarily affects the soybean market, but spillover momentum surely won’t hurt the corn and wheat markets.  Keep in mind that spillover works both ways, if China were to walk away again (probable) expect a retreat in prices.  The relationship between U.S. and China remind me of a high school relationship, one week you’re talking the next you’re not, so expect this to keep things on edge.  Export sales yesterday morning came in at 1,382,900 metric tons, this was within the range of expectations. 

 

Technicals:   On the technical side of things, not much has changed over the last 24 hours.  The market is pressed up against our technical resistance at 380 ½.  This line in the sand represents a key Fibonacci retracement from the May highs to the July lows, as well as the breakdown point from Friday’s session. We believe the bears retain control until consecutive closes above this pocket. On the support side of things, our previous 3-star support from....Please sign up 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 up 27 ½ cents, trading in a range of 33 ½ cents.  Funds were estimated buyers of 20,000 contracts.

 

Fundamentals:  The possibility of the U.S. and China coming to an agreement before the end of the month has put a premium back into the market, pressing prices back to pre-USDA report levels.  As mentioned in the corn section, you can expect these headlines to keep volatility alive, presenting opportunities for both the bulls and the bears, a revolving door of buy the rumor, sell the news for now.  Export sales yesterday morning came in at 705,000 metric tons, this was within the range of expectations.

 

Technicals:  The market worked up against the psychologically significant $9.00 handle yesterday morning but failed to attract new buyers for a breakout above. If the bulls can chew through resistance and close above here, we could see funds cover shorts and take prices towards our next resistance pocket which comes in from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

Wheat (September)

 

Yesterday’s Close:  September wheat futures finished yesterday’s session up 9 ½ cents, trading in a range of 16 ¾ cents.  Funds were estimated buyers of 4,000 contracts.

 

Fundamentals: Wheat futures are seeing a continuation of buying this morning off of a string of positive headlines over the last 24 hours.  Positive trade talks revolving around China and NAFTA, coupled with some great export sales have put a near term floor in prices.  We are skeptical of longer term fundamentals.  We are more neutral than thing here.  Our bias is not binary here, just because we are not all bulled up does not mean we are all bear’d up.

 

Technicals:  The market worked 2% higher in the overnight and early morning trade, pressing prices towards our first resistance pocket of 559 ½-560 ½.  If the bulls can finish the week above here, they will have a very clear advantage going into the weekend.  For the bears to have the advantage, they need to see a close back below 538.  This would open the door for a move 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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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.