Grain Market Update (3.21.18)
Mar 21, 2018
Yesterday’s Close: May corn futures finished the session down 1 ¼ cents, trading in a range of 3 ¾ cents on the day. Funds were estimated sellers of 8,500 contracts.
Fundamentals: The USDA announced a sale of 110,000 metric tons to Peru yesterday, other than this the news wires were pretty light. Market participants are continuing to shift attention towards next weeks Prospective Plantings report, that will be released on the 29Th at 11am cst; we will start sharing estimates for that early next week. Once that report is behind us, the weather jawboning will start to pick up. On today’s calendar we have a Fed meeting which could lead to some currency volatility. We also get the weekly EIA ethanol numbers at 9:30 cst. Tomorrow morning is export sales, we will have those numbers in tomorrows report.
Technicals: The market found held ground just above our support pocket yesterday which we have outlined as 371 ¾-373. This pocket represents a key Fibonacci retracement level that has acted as previously significant support and resistance, along with the 50-day moving average. A break down below could encourage additional long liquidation ahead of next weeks report, the next line in the sand comes in at....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Yesterday’s Close: May soybean futures finished the session up 4 ¾ cents, trading in a range of 7 ½ cents on the day. Funds were estimated buyers of 7,000 contracts.
Fundamentals: New news was hard to come by yesterday which led to a bit of a relief rally for soybean futures. Market participants continue to keep an eye on Argentina but starting to shift the focus towards next weeks report and US weather. Argentina is expected to be mostly dry for the rest of the week with the potential for moisture over the weekend. Next weeks Prospective Plantings report will be released on the 29th at 11am cst.
Technicals: Soybeans are trying to get some follow through in the overnight and early morning trade as the market attempts to stage a bit of a relief rally. We continue to believe that the bears are in control of this market and a relief rally to 1038 ¼-1041 ¾ will give the opportunity for sellers to get back in at better prices. Only a close back above.....will turn the tide......Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Yesterday’s Close: May wheat futures finished yesterday’s session up 1 cent, trading in a range of 7 ½ cents for the day. Funds were estimated to have been buyers of 2,500 contracts.
Fundamentals: The market managed to find some footing yesterday as the bulls and bears try to dissect the true impacts of the recent rains. Forecasts show that additional moisture could be working its way into the forecast, this will be something to keep a close eye on. A miss will provide a premium to the market and a hit would hit the market. We do have a Fed meeting today which will inevitably spark some volatility in currencies, this could spill over into commodity markets such as wheat.
Technicals: The market is trying to hold water in between the psychologically significant 450 level and 455 ¾ which represents the 100-day moving average. This pocket was also resistance in early January and a breakout point at the end of January. A breakdown and close below this support pocket could send futures back town towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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