Grain futures have had a quiet overnight and early morning trade. Will the market be able to finish the week on a high note?
Oliver Sloup was on RFD-TV yesterday afternoon with Scott the Cow Guy, sharing his thoughts on the recent rise in grain prices and the volatility we saw in the livestock trade.
We’ve shifted our focus to the July futures contracts as the volume starts to increase there and decrease in May futures. May options expiration is this Friday, which means first notice day is next week. If you’re in May futures, you may consider exiting or rolling those positions
Corn
Technicals (July)
July corn futures managed to stage a nice recovery in yesterday’s trade, erasing majority of the previous day’s losses. With that said, there was still a lot to be desired as wheat continues to make new highs corn looks stuck in a rut. These two markets don’t need to be highly correlated, but one would think a 5-day and 70ish cent rally would help corn futures a little more than they have.
Bias: Bullish/Neutral
Resistance: 456 1/2-460****, 471-471 1/2***
Pivot: 448-451
Support: 441 3/4-444 1/2***, 433 1/4-436****, 422 1/4-424 1/4***
Soybeans
Technicals (July)
Yesterday’s trade was an about face to the previous day’s trade where we traded higher then back near unchanged, yesterday we traded lower then back near unchanged, about a 25-cent range in total, all to finish yesterday’s trade near unchanged. Surely this has shaken out some weak hands as the market searches for its next directional move. We lean on the more cautious side when it comes to soybeans and feel that if you’re a hedger, you may consider looking at options to help establish a floor while keeping the upside open. Volatility is still relatively low which may make options more appealing. Seasonally we see the volatility pick up into May and June.
Bias: Neutral
Resistance: 1182 1/4-1186 1/4, 1199 1/2-1204
Pivot: 1169 1/4-1173 1/2
Support: 1150-1155, 1140 1/4-1145 3/4**
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