Yesterday’s Close: July corn futures finished yesterday’s session up 5 ¼ cents, trading in a range of 7 ¾ cents. Funds were estimated buyers of 37,000 contracts.
Fundamentals: Wet weather throughout the eastern corn-belt continues to cause planting delays throughout the eastern corn belt, dominating the headlines and creating high hopes for prices. We believe there is a high probability to see planted acre projections walked back and a good chance of a below trend yield too, for this reason we have a bullish bias over the intermediate term. With that said, traders and producers need to be able to capitalize on something after a 50 cent rally in the matter of a week and a half. June option expiration is on Friday, this could also help keep a lid on things in the very near term.
Yesterday’s Close: July soybean futures finished yesterday’s session down 10 cents, trading in a range of 27 ¾ cents. Funds were estimated sellers of 8,000 contracts.
Fundamentals: The market was attempting to breakout above technical resistance, but news that there would be an aide package of $2 for new crop beans sent prices tumbling lower. There doesn’t seem to be any clarity this morning on the actual structure of this program. USDA sent out a press release yesterday afternoon stating: Details on the new farming support program will be forthcoming shortly, but we want to be clear that the program is being designed to avoid skewing planting decisions one way or another. Farmers should continue to make their planting and production decisions with the current market signals in mind, rather than some expectation of what a farming support program might or might not look like based on inaccurate media stories.
Yesterday’s Close: July wheat futures finished yesterday’s session down 8 cents, trading in a range of 18 ¾ cents. Funds were estimated buyers of 1,000 contracts.
Fundamentals: The market took a turn yesterday on the back of shifting sentiment in the grains mid-afternoon, this sparked a round of profit taking which has fed on itself and led to a softer overnight/early morning trade. As mentioned in previous reports, new fundamental catalysts are slow developing so our focus remains on money flow and technicals.
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.