Opportunity in grains?

Published on: 13:00PM Sep 26, 2018

Corn (December)

 

Yesterday’s Close:  December corn futures finished yesterday’s session up 2 ¾ cents, trading in a range of 6 ¾ cents. 

 

Fundamentals:  The market moved higher again yesterday as short covering continues into Friday’s grain stocks report, that will be released at 11am cst.  The average analyst estimate for corn comes in at 2.101 billion bushels.  As far as weather goes, there are some isolated concerns but nothing that should have a dramatic influence on near term prices.  If prices continue to rally, we would not be surprised to see a pickup in producer selling. 

 

Technicals:  On the technical side of things, the market has been strong, posting its 5th consecutive close higher yesterday as short covering propels this market closer to significant resistance.  366-369 ¾ is the pocket we have been writing about for the past week.  This pocket represents the original breakdown point from the USDA report on August 12th, the 50-day moving average, and the top end of the most recent range.  On the support side of things, the first line in the sand is....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

 

Soybeans (November)

 

Yesterday’s Close:  November soybean futures finished yesterday’s session up 6 ¼ cents, trading in a range of 20 ¾ cents.

 

Fundamentals:  Soybeans rallied yesterday morning on the back of reports that Argentina would look to buy 60-70 million tons of U.S. beans over the next few months.  This was certainly a silver lining for the bull camp as it shows that South America may struggle to fill the void in Chinese demand.  Market participants are also looking forward to Friday’s Grain Stocks report, scheduled to be released at 11am cst.  The average analyst estimate is for 401 million bushels.

 

Technicals:  The market tried to stage a meaningful rally on the back of a bullish headline yesterday but fell short as the higher prices invited sellers in at a better price.  The market is continuing to hover around the psychologically significant $8.50 handle, this will be a big pivot point as we wrap up the week.  The next resistance pocket for us comes in from 858-863 ¼.   If the bulls fail to achieve that next leg higher, we could see seller step back in and press us back towards contract lows.  The significant line in the sand the bulls must defend comes in at....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

Wheat (December)

 

Yesterday’s Close:  December wheat futures finished yesterday’s session down 5 ¼ cents, trading in a range of 9 ½ cents.

 

Fundamentals:  Wheat futures were under pressure yesterday due to reports of welcomed moisture in the Black Sea region.  The market has been consolidating for the better part of the last 4 sessions as market participants search for new news to give them more conviction in their next step.  Friday’s Gran Stocks report could be that news.  The average analyst estimate is for 2.343 billion bushels.

 

Technicals:  The bears must defend Monday’s high on a closing basis to keep lower highs in play, lower lows have followed lower highs for the last 2 months.  A breakdown back below 520 will likely encourage additional selling pressure via long liquidation, leaving the door open for a run back towards....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

 

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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.