Corn and soybean futures prices saw big rallies in Thursday’s trade but have so far failed to find any follow-through to the upside. Was Thursday’s trade just a relief rally or is there more upside to come?
Corn
Technicals (July) July corn futures were able to erase nearly 5 days of losses in yesterday’s trade. In yesterday’s report we talked about the market failing to take out the previous day’s high in each of the prior 7 sessions, but yesterday’s move out above the previous day’s high is likely what helped trigger some short covering and technical buying which propelled prices just north of our 4-star resistance pocket at 451. With prices closing right at their high of the day we would have thought there would be some follow-through, but that has failed to materialize through the night and into the early morning trade. 444 1/4 will be the line in the sand that the Bulls would like to defend into the weekend, a failure to do so could throw a wet blanket on the newfound optimism.
Bias: Neutral/Bullish
Resistance: 460 1/4-463 1/2***
Pivot: 448-451
Support: 444 1/4**, 433-436****
Soybeans
Technicals (July) July soybean futures were able to hold our support pocket from 1170-1175 in the first half of the week which may have setup for some short covering in yesterday’s trade. Yesterday’s strong performance took prices right to our pivot pocket from 1199 1/2-1204. This pocket is psychologically significant, but it also represents a lot of previously important price points, along with the 50% retracement from the April lows to May highs. If the Bulls can chew through this pocket, we could see an extension towards 1220-1225. A failure and retest of support would likely be enough to break support.
Bias: Neutral
Resistance: 1220-1225***, 1232 1/4-1236 3/4***
Pivot: 1199 1/2-1204
Support: 1170-1175***, 1140-1145****
Wheat
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