Key Reversal in Grains

Published on: 14:09PM May 14, 2019

Grain Express

 

May 14, 2019

 
 

 

Corn (July)

 

Yesterday’s Close:  July corn futures finished yesterday’s session up 6 ½ cents, trading in a range of 14 ¼ cents. 

 

Fundamentals:  The market had a strong reversal following peak panic from retaliatory tariffs yesterday morning.  Export inspections came in at 1 million metric tons, towards the top end of expectations.  That number coupled with the expectation of planting delays cause short covering from the funds.  Yesterday’s Crop progress report showed that the U.S. corn crop is 30% planted, 5% behind expectations and well behind the 5-year average pace of 66%.  The past 24 hours should serve as a reminder of how important position sizing/management is, the market can remain irrational longer than you can remain solvent. 

 

Technicals:  The market had a....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com

 

 

Soybeans (July)

 

Yesterday’s Close:  July soybean futures finished yesterday’s session down 4 ½ cents, trading in a range of 16 cents.

 

Fundamentals:  The market staged a reversal following news that China would implement $60 billion in retaliatory tariffs, set to go into effect June 1st.  Weekly export inspections came in at 513,000 metric tons, this was within the range of trade estimates.  Crop Progress came out after the close and was friendly to soybeans, as you can see by price action in the overnight/early morning.  Crop progress showed that the U.S. soybean crop is 9% complete, lagging the estimates of 15%.  The 5-year average is 29%.

 

Technicals:  Yesterday’s reversal was....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com

 

 

Wheat (July)

 

Yesterday’s Close:  July wheat futures finished yesterday’s session up 11 ¾ cents, trading in a range of 22 ¼ cents.

 

Fundamentals:  The market managed to reverse on better than expected export inspections and short covering.  Weekly export inspections came in at 842,000 metric tons, well above the top end of expectations.  Yesterday’s Crop Progress report showed that spring wheat is 45% complete, behind the 5-year average pace of 67%.  Winter wheat crop conditions came in at 64% good/excellent, unchanged from the previous week.  We would not be surprised to see additional short covering, especially if we see that sentiment in corn and beans too.

 

Technicals: Yesterday’s....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com

 

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