Fundamentals: December corn futures made new contract lows for the second straight day as the technical landscape remains bleak at best. On the fundamental side, there is not much better to say there. Crop conditions increased and the threat of an early frost looks minimal on the intermediate term forecast. FC-Stone released their crop survey results, they estimate corn production to be 13.809 billion bushels with an average yield of 168.4, not that far off from the USDA’s 13.901 and 169.5. Demand continues to be a concern, above is a visual to put things in perspective (click to enlarge, courtesy of Karen Braun from Thomson Reuters). Due to Labor Day the weekly export sales report will be released tomorrow at 7:30am CST.
Technicals: Not much has changed on the technical front over the last 24-hours as the bears remain in full control, in uncharted territory. The market is....Sign up for your FREE two-week trial!
Fundamentals: Soybeans are stabilizing this week on the lack of bearish news and a lingering concern over the late planted crop. The USDA also announced a flash sale of 451,766 metric tons sold to Mexico, another silver lining on the demand front. FC-Stone released their crop estimates and have production at 3.661 billion bushels with a yield of 48.3, not far off from the USDA’s 3.68 and 48.5. Due to Labor Day the weekly export sales report will be released tomorrow at 7:30am CST.
Technicals: On the technical side of things, the market is pressing up against first resistance, we have defined that as 880-882. If the bulls can chew through this pocket, we would look for an extension back towards 891 ½-896 ¾. Without a significant weather scare, that may be a bit of a brick wall. We remain cautiously optimistic with our bias still at Neutral/Bullish.
Previous Session Bias: Neutral/Bullish
Resistance: 880-882**, 891 ½-896 ¾***, 921-924***
Support: 852 ½-856 ½****, 839 ¾-843 ¾**, 815 ½****
Chicago Wheat (December)
Fundamentals: Chicago wheat futures recovered well yesterday, leading to overnight and early morning strength today. Due to Labor Day the weekly export sales report will be released tomorrow at 7:30am CST. We continue to believe that rallies will be relief and not much more until we see a shift in money flow and technicals.
Technicals: Chicago wheat has been working hard to work higher, widening the spread with the KC contract. The market is working....Sign up for your FREE two-week trial!
Kansas City Wheat (December)
Grains, Livestock, Gold, Oil, Currencies, S&P
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.