Grain Markest Consolidate Ahead of the USDA Report

Corn

Fundamentals: Corn futures have traded both sides of unchanged in the overnight and early morning session as prices consolidate ahead of end of month, end of quarter, and all-important USDA report. The range of estimates for acres comes in from 88.4-91.0 million. In March the USDA was at 89.5. The average estimate for US corn stocks as of June 1 is 4.345 billion bushels. In last year’s report we were at 4.111.

Technicals (September): Consolidation is the name of the game as we inch closer to the highly anticipated USDA report. With the market chopping around and not really going anywhere, many of our support and resistance levels remain unchanged. Resistance levels come in near 680ish and more significantly 700ish. The upper end would be a retracement of last week’s secondary breakdown point and represents the 100-day moving average, not to mention the psychological significance. On the support side.....Sign up for your FREE two-week trial of our daily commodity commentary!

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Soybeans

Fundamentals: All eyes will be on tomorrow’s USDA report. The range of estimates for planted acres is 89.2-92.4 million, the USDA was at 91.0 in March. The average estimate for US soybean ending stocks as of June 1 is .954 billion bushels. Last year at this time we were at .769.

Technicals (August): The market has rallied back to our resistance pocket, which we labeled in yesterday’s report as 1560-1566. This pocket represents the secondary breakdown point from last week. If the Bulls can chew through this pocket, we could see a further extension take us into the mid 1590’2, which is the original scene of the crime, aka breakdown point from June 22nd. This would also be near a psychologically significant level, 1600. If these levels can hold, they would mark lower highs. We would be looking.....Sign up for your FREE two-week trial of our daily commodity commentary!

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Wheat

Technicals: Wheat futures are attempting to rebound back towards our resistance pocket, 960-970, previously this was support. If the Bulls cannot achieve a conviction close back above this pocket, we could see the selling pick back up. With that said, a breakout and close above here could spark a wave of short covering, with little significant resistance until.....Sign up for your FREE two-week trial of our daily commodity commentary!

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Support:

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