Grain Market Update (5.23.18)
May 23, 2018
Yesterday’s Close: July corn futures finished yesterday’s session up 2 ¼ cents, this after trading in a range of 6 cents. Funds were estimated to have been buyers of 8,000 contracts.
Fundamentals: Corn futures received a helping hand from the wheat market yesterday, but it was not enough to breakout of the top end of the range. Weather has cleared up in a lot of areas which has allowed producers to get a lot of field work done recently (northern corn belt still lagging). As the crop continues to emerge and develop, weather will become a more important issue. Trade rhetoric has picked up recently as hopes that China will import more US ag products provide a near term floor in the grain markets. We have yet to receive any details with regards to this, so we are taking it with a grain of salt. We will get updated ethanol numbers from the EIA at 9:30am cst today. Export sales will be out tomorrow morning.
Technicals: The market held ground yesterday but marked lower lows and lower highs on the week which could encourage funds and producers to reduce risk a little further. 407-408 ½ is the pocket the bulls need close above in order to give the green light for that next leg higher. A failure to do so could bring us back to the bottom end of the range; we have defined that as....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: July soybeans finished yesterday’s session up 7 ½ cents, this after trading in a range of 15 ¾ cents. Funds were estimated buyers of 3,500 contracts.
Fundamentals: soybean futures have been fidgety this week as trade rhetoric continues to be the key catalyst. We have gotten word that China wants to import more US ag products but little details around it. We will continue to keep a close eye on this going forward. Strikes in Argentina could be offering a little support this week, but this will likely be short lived. Weather in the states has been friendly recently which has provided the opportunity for producers to get a lot of the crop in the ground. Weather will play second fiddle to trade talk but will be nearly as important in the intermediate term. Export sales will be released tomorrow morning.
Technicals: The market continued higher yesterday, pushing towards our next resistance pocket which comes in from 1038-1042 ½. This pocket represents a key retracement on the years range, along with the 50-day moving average. If the bulls fail to achieve a conviction close above this pocket the bears will remain in control. Lower highs and lower lows have been the trend that is still intact. So, from a risk reward perspective, this is an excellent spot for....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: July wheat futures finished yesterday’s session up 13 ¾ cents, this after trading in a range of 27 ½ cents. Funds were estimated to have been buyers of 10,500 contracts.
Fundamentals: There have been some concerns that the wheat crop in Russia and Ukraine may not be as good as previously expected due to dry weather. On top of that, there are still concerns lingering about the crop here in the states. The lack of moisture in some key areas has helped offer support this week. We expect the choppy trade continue until we get more clarity on what the crops will bring.
Technicals: The market has been a chop fest over the last three sessions, will today market the fourth? The market is up against technical resistance from 523-524 ¼; a conviction close above this level opens the door for a run towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Sign up for a free trial of 1 or all 5 of our daily Blue Line Express commodity reports!
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.