Grains Continue to Firm
Jan 30, 2018
CORN (March)
Yesterdays Close: March corn futures closed 2 ½ cents higher yesterday, trading in a range of 2 ½ cents on the day. Funds were estimated buyers of 11,500 contracts.
Fundamentals: Export inspections yesterday morning cam ein at 993,506 metric tons, this was at the top end of the expected range from 700,000-1,000,000 metric tons. Last weeks read came in at 668,946 metric tons. The USDA also announced a sale of 115,000 metric tons to Egypt. Informa Economics released their updated outlook for the 2018 US crop. They have acres at 89.1 million, yield at 174.5 bushels per acre, production at 14.281 billion bushels, and carryout at 2.061 billion bushels.
Technicals: The market has made its highest mark since November 9th this morning as short covering from funds continues to offer technical support as we round out the month. If the market is able to close at these levels, it could encourage additional short covering and invite new buyers into the market. The next resistance pocket 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.
SOYBEANS (March)
Yesterdays Close: March soybean futures finished yesterdays session up 5 ¼ cents, trading in a range of 12 ½ on the day. Funds were estimated buyers of 5,500 contracts.
Fundamentals: Export inspections yesterday morning came in at 1,104,978 metric tons, this was towards the top end of the expected range from 800,000-1,300,000 metric tons. Last weeks read came in at 1,419,430 metric tons. Informa Economics released their updated projections for the US crop. They have US acres at 91.2 million, yield at 49.5 bushels per acre, production at 4.481 billion bushels, and carryout at 538 million bushels. Weather concerns in South America continue to offer support to the market but it seems that it may not be enough to spark another short covering rally at this point. Seasonally speaking, we are in a bullish time. If you had bought May soybeans on January 28th and sold February 26th for the last 15 years, you would have been profitable for 13 of them with the average gain being roughly 28 cents.
Technicals: The market has been trading in decent ranges recently but going now where fast as the market hovers just above a handful of key technical. 980-988 contains the 50,100, and 200 day moving average along with the 50% retracement (middle of the range) from the June lows to the July highs. If the bulls cannot defend this pocket this week, we would expect to see a move back towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
WHEAT (March)
Yesterdays Close: March wheat futures closed up 6 ¾ cents, trading in a range of 6 ¾ cents on the day. Funds were estimated buyers of 5,500 contracts.
Fundamentals: Export inspections yesterday morning came in at 579,875 metric tons, this was above the top end of the expected range from 250,000-450,000 metric tons; last weeks read came in at 337,000 metric tons. The weaker dollar recently should continue to help the prospects of better exports. Informa Economics released their updated estimates for the US. They have all wheat acres at 46.1 million, production at 1.901 billion bushels, and carryout at 839 million bushels.
Technicals: The wheat market has been the most constructive as the bulls continue to slice through technical resistance, leading to additional fund short covering towards prices not seen since October as we round out the month. 456 ½ is the next line in the sand the bulls want to see a close above, that opens the door 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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