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What's Next for Soybeans?

Published on: 14:21PM Dec 20, 2017

CORN (March)

 

Yesterdays Close:  March corn futures closed ¾ of a cent higher yesterday, trading in a range of 2 ¼ cents on the day.  Funds were estimated buyers of 2,500 contracts.

 

Fundamentals:  There has not been much new news on the wires which has kept corn in tight range recently.  Weekly EIA ethanol numbers will be out this morning, we have been seeing a strong trend here which has helped offer “support” to corn.  We know that traders and other market participants are keeping an eye on South American weather and planting, but it seems majority are waiting for the January USDA report.  With the end of the year just a stones through away, it is possible that we could see some position squaring, but we do not see any significant market moves from that.  January option expiration is this week, there are nearly 12,000 puts open at the 350 strike; we think that this will provide a floor in the market as we head into the Christmas weekend.

 

Technicals: The market continues to linger near the 350 level which we think will continue to be.....Please register for a Free Trial to see our technical outlook, proprietary bias and levels.

 

SOYBEANS (January)

 

Yesterdays Close: January soybean futures closed 7 cents lower, trading in a range of 9 cents on the day.  Funds were estimated sellers of 7,000 contracts.

 

Fundamentals:  Soybean prices have been in free fall mode on the back of long liquidation form the funds.  South American weather is the key catalyst on the radar for traders and it appears forecasts are looking for more wet conditions than previous expected for some areas of Argentina and Brazil.  Outside of that, there has not been much new news across the wire.  Export sales will be out tomorrow as usual, the bulls will want to see a better than expected number to help provide some relief into the Christmas weekend.  January option expiration is this week, there are no strikes that stick out in terms of open interest; we will update you if that changes.

 

Technicals:  The market has been slicing through technical support levels like a warm knife through butter, creating a technical graveyard.  The bulls.....Please register for a Free Trial to see our technical outlook, proprietary bias and levels.

 

 

 

WHEAT (March)

 

Yesterdays Close:  March wheat futures closed 1 ½ cents lower yesterday, trading in a range of 5 cents on the day.  Funds were estimated sellers of 2,000 contracts. 

Fundamentals:  Wheat bulls have been searching for a strong fundamental catalyst to carry this market up out of the mud but have been struggling to do so.  Global supply and poor demand have kept a lid on the market and will likely continue to do so.  We saw some decent exports over the last week, but the bulls will want to see this become more of a trend and not just a good number followed by three poor numbers.  We do have January option expiration this week, this could keep a lid on the chance of a short covering rally. 

 

Tehcnicals:  Lower highs and lower lows have been the trend over the past several months and there is no need to fight that.  The only buying.....Please register for a Free Trial to see our technical outlook, proprietary 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.

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