Weekend Wrap Up (Grains)
Dec 02, 2017
March corn futures finished the week 4 ¼ cents higher on the back of end of the month short covering from the funds. Fridays Commitment of Traders report showed funds bought back nearly 14,000 contracts, this puts their net short near 197,000 contracts. The three-day rally brings the market up to the 50-day moving average, an indicator the market has struggled to close above since July. If the market is able to achieve consecutive closes above this barrier, we could see additional covering from the funds.
January soybean futures finished the week on a strong note but that was only good enough to get us near unchanged for the week. We talked in the middle of the week about that 985 area being an area of first support with the 50 and 100 day moving average coming in there, as well as the 50% retracement for the years trading range. The market has been range bound for the better part of the last three months, but we have a bullish tilt to the market as South America gets into their crop development stages.
If you’d like to know what we are looking at for any of the other commodity markets, please do not hesitate to reach out. Oliver@BlueLineFutures.com
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