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Will the grain rally continue?

Published on: 14:05PM Jan 04, 2019

Corn (March)

 

Yesterday’s Close:  March corn futures finished yesterday’s session up 4 ½ cents, trading in a range of 5 ¾ cents.  Funds were estimated buyers of 10,000 contracts on the day.

 

Fundamentals:  The market moved higher yesterday with the new crop contract gaining ground above that psychologically significant $4.00 handle.  There has not been a lot of new news on the wires, so we are chalking this up to a technical trade.  The USDA will decide today if they will release next week’s USDA report if the government is still shut down.  Due to the holiday in the first half of the week, the weekly ethanol numbers will be released today at 9:30cst.

 

Techncials:  The market managed to....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com.

 

Soybeans (March)

 

Yesterday’s Close:  March soybean futures finished yesterday’s session up 6 cents, trading in a range of 8 ½ cents.  Funds were estimated buyers of 2,500 contracts on the day. 

 

Fundamentals:  The market worked higher on little to no news, but we continue to assume the market is pricing in some demand coming in from China, price precedes news.  The USDA will decide today if they will release next week’s USDA report if the government is still shut down.  The US and China will meet at the negotiating table next week.  We are feeling optimistic that talks will continue in the right direction.  Our optimism doesn’t mean we think there will be a deal, it just means that no bad news is good news for the market. 

 

Technicals:  Grain prices worked higher again yesterday, confirming....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com.

 

Wheat (March)

 

Yesterday’s Close:  March wheat futures finished yesterday’s session up 5 ¾ cents, trading in a range of 10 cents.  Funds were estimated buyers of 5,000 contracts on the day.

 

Fundamentals:  Wheat has found a lot of support here over the last two sessions as bargain buyers step back into the market after the holiday trade.  European wheat seems to be lending a helping hand in the recent rally, but the bulls want to see a strong technical close to encourage additional short covering.  We have been discussing the KC/Chicago spread for some time now, buying KC and selling Chicago.  That spread was close to 23 cents wide when we first started talking about it, it has narrowed and trading about 10 cents this morning.

 

Technicals:   Wheat futures are pressing....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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