Yesterday’s Close: May corn futures finished yesterday’s session down 2 ¾ cents, trading in range of 4 ¼ cents. Funds were estimated to have been sellers of 7,000 contracts.
Fundamentals: Yesterday’s weekly planting progress report showed that we are 3% complete, this is up 1% from the previous week; we are lagging last year’s pace of 6%. Although the weather is causing some minor delays, producers can get the crop in the ground in a short amount of time. For an example: Iowa planted 61% of their crop in 1 week back in 2011 (week ending May 8th) and has planted nearly 50% in one week on six other occasions (Thomson Reuters). Weekly export inspections yesterday morning came in at 1,504,697 metric tons, this was towards the top end of expectations from 1,100,000-1,600,000 metric tons.
Technicals: The market retreated down to our key support pocket yesterday which we have defined as 379 ¾-382 ¾. This pocket represents recent lows, the 50-day moving average, and a key Fibonacci retracement level. We continue to believe that the risk reward favors the buy-side at these levels. If the bulls can defend this pocket on a closing basis this week, we would expect to see the market work back towards the top end of resistance which comes in from....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 soybeans finished the session down 9 ¾ cents, trading in a range of 17 ¼ cents. Funds were estimated sellers of 7,500 contracts.
Fundamentals: Soybeans started the week under pressure on concerns that planting delays in corn would persist which could lead to increased acres for soybeans. Weather developments will be very important in the states not just into planting season, but through the crop development stages too. Yesterdays export inspections number came in at 444,987 metric tons, this was within the range of expectations from 300,000-600,000 metric tons. Last weeks read came in at 381,000 metric tons.
Technicals: The market gave up early morning gains quickly on yesterdays open and the selling pressure seemed to have fed on itself. The market now looks poised to test technical support from 1034 ¼-1036 ¾. This pocket represents a key Fibonacci retracement from the January lows to March highs, the 50-day moving average, and the gap from March 6th. The market posted higher highs last week, if support holds that will market higher lows. On the resistance side of things....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 down 12 ½ cents, trading in a range of 8 ¾ cents (gap lower). Funds were estimated sellers of 9,000 contracts on the day.
Fundamentals: The market shrugged off winter weather in some areas over the weekend and sold off due to much needed rains in the next 7-10 days. If the chances of rain start to dwindle we would anticipate a premium to come back into the market. Winter wheat conditions are at 31% good/excellent, this is up 1% from the previous week. Last year at this time the crop was rated at 54% good/excellent. Yesterdays export inspections report came in at 483,058 metric tons, this was towards the top end of the expected range from 200,000-500,000 metric tons. Last weeks export inspections came in at 431,000 metric tons.
Technicals: The breakdown yesterday was the fourth consecutive close lower; we have now taken over 30 cents off of prices in that amount of time. In yesterday’s report we listed 45 ¾-461 ¾ as first support, that pocket remains intact for today’s session. This pocket represents previously important price points, along with the 100-day moving average. The bulls want to reclaim...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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