Grains hit technical resistance
Feb 01, 2018
Yesterday’s Close: March corn futures finished yesterday’s session up ¼ cents, trading in a range of 2 ½ cents on the day. Funds were estimated buyers of 3,500 contracts.
Fundamentals: The lack of new news hitting the wires may halt the recent run higher for corn. Ethanol production in the weekly EIA report came in at 1.062 million barrels per day, this was down 22,000 barrels from the previous week; still up from last years 1.054 mbpd. There was a sale of 145,000 metric tons to unknown yesterday. This mornings export sales came in at 1,850,000 metric tons, this compares to the expected range from 1,000,000-1,700,000 metric tons. Weather in South America continues to be a concern for some areas as dry weather could lead to potential yield loss. If we do get an extension of the recent rally, we could see producer selling start to pick up.
Techncials: The market has been shifting in favor of the bulls over the last week as we have seen the market close above resistance and hold that as new support. The bulls need to defend 357 ¼-358 ½ on a closing basis to encourage additional short covering from the funds. A break and close below likely presses the market back 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 soybean futures finished yesterdays session down 2 ¾ cents, trading in a range of 13. Funds were estimated sellers of 8,000 contracts.
Fundamentals: The prospects for rain in the South American extended forecast has kept a lid on a continuation of the rally. If the rains remain in the forecast and eventually falls, we would expect to see the market retreat quickly. Export sales this morning came in at 358,900 metric tons, this compares to the expected range from 600,000-1,200,000 metric tons. There are some seasonals in play that should be encouraging for the bulls. We have recently referenced a May buy, the November buy starts today. If you had bought on February first and sold on the 17th, you would have been profitable for 13 of the last 15 years, with the average gain being about 12 cents.
Technicals: The market is retreating in the overnight and early morning session, but we will take that with a grain of salt as we await volume confirmation from the floor open. The market has significant support 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: March wheat futures finished the session down 6 ½ cents, trading in a range of 11 ¼ cents. Funds were estimated sellers of 6,500 contracts.
Fundamentals: The market is losing some steam as recent longs look to take profits off of the table. Weather continues to be a concern for some areas of the country. We have been keeping an eye on the Kansas City contract as it will likely continue to have spill over into the Chicago contract. Weekly export sales came in at 289,100 metric tons, this compares with the estimated range from 300,000-600,000 metric tons.
Technicals: March wheat futures saw a round of profit taking yesterday, and that is carrying over into the overnight and early morning session. The market is working its way back towards 442 ¼, this was previous resistance which now becomes first support. A break and close below could lead to additional pressure and 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 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.