Daily Grain & Cotton Commentary (11.20.19)

Published on: 07:59AM Nov 20, 2019
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Corn (December)

Fundamentals: December corn futures were able to find some footing yesterday with help from a flash sale of 191,000 metric tons of corn to an “Unknown” destination. This is the second day in a row that we have seen exports; a potential sign that demand will come back by the turn of the year, something we have been suggesting as a possibility recently. December option expiration is this Friday, looking at the open interest it appears as that a lot of in the money puts could help support prices in the back half of the week.

Technicals: The market continues to tread water in our support pocket from 366-368 ¼, a must hold pocket for the bulls. A breakdown and close below could open the door for a whoosh towards contract lows, 352 ¼. Keep in mind that....Sign up for your FREE trial!


Soybeans (January)

Fundamentals: January soybeans tried to find their footing yesterday, but the rally attempt was halted by headlines that the U.S. would raise tariffs even higher if China was unwilling to make a deal. This continues to be a game of chicken as we get closer to the inflection point, the U.S. election. We’ve said it before, and we’ll say it again; though China is hurting worse than the U.S. from the trade war, we think that China has the leverage up until the election.

Technicals: January soybeans tried to gain ground yesterday but failed at the 200-day moving average which led to a retreat into technical support. We have defined this pocket as 909 ½-913 and the bulls need to see prices work off this pocket better, like yesterday. A failure to do so would put the bears in the driver’s seat, confirming a bearish head and shoulders and opening the door for a break below....Sign up for your FREE trial!


Chicago Wheat (December)

Fundamentals: Chicago wheat futures continued to rally yesterday, much of which was a technical rally. The spread between the Kansas City and Chicago contract narrowed up a little more, something that we expect to continue over the intermediate term. If you’re trading the December contracts, you will want to consider rolling by Monday.

Technicals: The market continued its technical rally yesterday but was halted in our resistance pocket, we have had that defined as 515 ¼-517 ¼. A failure here keeps us rangebound, potentially taking us back towards....Sign up for your FREE trial!


Kansas City Wheat (December)

Technicals: Kansas City wheat futures managed to rally off technical support, marking higher lows and potentially taking us to higher highs. Our pivot pocket remains intact from 425-429, if the bulls can chew through this pocket, we would expect to see an extension towards....Sign up for your FREE trial!


Cotton (March)

Technicals: March cotton futures are threatening to breakdown below support at 65.00. If this area gives way, we could see accelerated selling pressure take us closer to....Sign up for your FREE trial!


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