Grain markets stable despite global volatility
Feb 06, 2018
Yesterdays Close: March corn futures finished yesterdays session down 2 ¼ cents, trading in a range of 3 ½ on the day. Funds were estimated sellers of 8,000 contracts.
Fundamentals: There was a sale announcement yesterday of 130,000 metric tons to South Korea. Export inspections came in at 1,073,868 metric tons, this was above the top end of the expected range from 750,000-1,050,000 metric tons; last weeks came in at 993,506 metric tons. Corn has been stable in the overnight session despite the surge in outside market volatility and a firming US Dollar this morning; this is somewhat of a silver lining for the bull camp. There is no new news to report with regards to South American weather over the last 24 hours. Market participants are hoping Thursdays WASDE report gives the market something to get excited about, we will have estimates in tomorrow’s report.
Technicals: The market made a move lower in the overnight session but has held up relatively well considering the global stock market volatility. First support on a closing basis continues to be 357-358 ½. If the bulls fail to defend this level, we expect to see additional pressure come into the market and press us back towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Yesterdays Close: March soybean futures finished the day down 8 ¼ cents, trading in a range of 8 on the day (gap). Funds were estimated sellers of 9,000 contracts for the session.
Fundamentals: Wet weather working its way in to the forecast for Argentina gets the blunt of the blame for yesterdays weakness. There was a sale of 132,000 metric tons to Unknown destination yesterday. Export inspections came in at 1,303,723 metric tons, this was above the expected range from 700,000-1,000,000 metric tons; last weeks came in at 1,104,978 metric tons. Aside from South American weather, market participants will also be looking forward to Thursdays USDA report. We are not expecting anything significant and will have estimates in tomorrow’s report.
Technicals: 971 ¼ is the level we have been harping on as an opportunity on the first test. It held on the first test, but the inability to sustain a rally on that bounce should have the bulls a little cautious. If the market tests that support pocket again, we expect to see it give way and lead to a leg lower towards....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: March wheat future finished the day down 5 cents, trading in a range of 7 for the day. Funds were estimated sellers of 4,500 contracts.
Fundamentals: Yesterdays export inspections came in at 428,557 metric tons, this was within the expected range from 325,000-625,000 metric tons. As with the other grain markets, the futures have held very well in the overnight and early morning session despite the global stock market turmoil and firmer US Dollar; this is a bit of a silver lining, but the bulls will want to see confirmation through volume on the floor open.
Technicals: The market is treading right on the 100-day moving average this morning, that is the pivot point for the market this week. If the bulls can defend this level, we could see additional short covering take us back towards the recent highs. A failure to sustain price action above here opens the door to a leg lower 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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