Will Grain Markets Climb Higher?

Published on: 13:07PM Mar 25, 2019

Grain Express

 

March 25, 2019

 
 

 

 

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Corn

 

Last Week’s Close:  May corn futures finished Friday’s session up 2 ½ cents, extending gains for the week to 5 ¾ cents.  Friday’s Commitment of Traders report showed that funds sold 3,361 contracts through March 19th, extending their net short position to 261,326 futures/options.

 

Fundamentals:  Weather has been a growing concern in the Midwest.  It is a possibility that we see planting delays in areas and maybe even a shift of acres from corn to beans.  Freight disruption on flooded rivers is also a concern with plenty of snow melt yet to come.  We believe this issue will stick around for a minute, which could encourage a wave of fund short covering.  Friday, the USDA will release their quarterly Grain Stocks report along with prospective plantings.  We hope to have estimates available for you by midweek.

 

Technicals:  The market rallied into our 4-star resistance pocket on Friday, we had defined that as 380 ¼-383 ½.  Though we think the market....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com.

 

 

Soybeans (May)

 

Last Week’s Close:  May soybeans finished Friday’s session down 6 ¼ cents, putting prices 5 cents lower for the week.  Friday’s Commitment of Traders report showed that funds bought 26,205 contracts through March 19th, trimming their net short position to 63,922 futures/options.

 

Fundamentals:  The market has been fairly stagnant over the last two weeks as the market participants wait for new news, which we will likely get this week.  The US and China will resume trade negotiations on Thursday which will inevitably lead to some sort of market moving headline.  With that said, the headlines have lost their luster as this process gets drawn out, so perhaps it’s a buy the rumor, sell the news situation.  On Friday, the USDA will release their quarterly Grain Stocks report along with prospective plantings.  We hope to have estimates available for you by midweek. 

 

Technicals:  The market was technically sound last week, trading within our support and resistance pockets which we had defined as 900-904 ¼ and 913 ¾-916 ½, respectively.  These pockets....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com.

 

 

Wheat (May)

 

Last Week’s Close:  May wheat futures finished Friday’s session down 1 ½ cents, trimming gains for the week to 4 ¾ cents.  Friday’s Commitment of Traders report showed that funds sold 1,359 contracts through March 19th, extending their net short position to 73,506 futures/options.

 

Fundamentals:  Wheat futures have had a nice rally over the last two weeks, thanks to short covering and spillover strength from the corn market.  Money flow has been the big catalyst recently and will continue to be as we head into Friday’s USDA report which will gives us a look at Quarterly Stocks.  We hope to have estimates out by midweek. 

 

Technicals:  The market pressed up against our 4-star resistance pocket on Friday but could not find enough momentum to stage a full blow breakout.  That resistance pocket....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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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.