Daily Grain & Cotton Commentary (1.28.20)

Published on: 07:54AM Jan 28, 2020

Corn (March)

Fundamentals: March corn futures took a beating yesterday, much of the pressure coming from the Sunday night trade. The fear of coronavirus created a “sell first, ask questions later” environment which has eased in the broader markets overnight. Yesterday’s weekly export inspections came in at 667,000 metric tons, within the range of estimates. The USDA also announced a sale of 111,000 metric tons to Japan.

Technicals: Corn futures tested and held 3-star support, 375-377 ¾. This is a MUST HOLD pocket for the bulls, a break and close below likely takes us below the December lows ((371) and closer to the contract lows from September, 365 ¾. First resistance comes in....For the FULL report, click this link!

 

Soybeans (March)

Fundamentals: March bean futures broke lower yesterday but managed to claw back majority of their loses to get back to the psychologically significant $9.00 handle. The fear of coronavirus led to a risk-off trade, pricing in a good amount of concern, for the time being. We anticipate that this will begin to be more contained and be nothing but a memory in the coming weeks (knock on wood). Weekly export inspections yesterday morning came in at 1,000,000 metric tons, this was within the range of expectations. Brazil’s soybean harvest is estimated to be 5%.

Technicals: Soybean futures looked destined to test the low end of the range from August, September, and December; that comes in from 879-882 ¾. This support pocket remains intact and will continue to be pivotal on a closing basis. A break and close below opens the door for a potential run at the May contract lows of 841 ½. The RSI (relative strength index) is the most oversold since bottoming in December, another reason why we like buying from here down to technical support. $9.00 is the line in the sand on the resistance side, consecutive closes above here could lead to....For the FULL report, click this link!

 

Chicago Wheat (March)

Fundamentals: Wheat futures managed to shrug off the negative price action and finish the day in positive territory. Weekly export inspections came in at 224,000 metric tons, below the low end of estimates. At these prices, we don’t see much value in the global market. Therefore, we continue to lean on the short side of wheat at these levels.

Technicals: 573 ½ was the previous highs and is in our pivot pocket. If the bulls fail to maintain price action above here, we could see long liquidation take prices closer to 550. If the market breaks and closes below 557 ¼-559 ½ we would look for a run to....For the FULL report, click this link!

 

Kansas City Wheat (March)

Technicals: Kansas City wheat futures rebounded off of yesterday’s lows but are failing to find meaningful follow through in the early morning trade. As it stands right now, we are looking at a double top at 504 ¾. First resistance comes in from 488 ¾-490 ½ and we believe the....For the FULL report, click this link!

 

Cotton (March)

Technicals: March cotton futures rebounded off yesterday’s lows but are failing to reclaim ground above our pivot pocket, 70.00-70.50. This will be key on a closing basis, if the....For the FULL report, click this link!

 

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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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