Corn: 20% harvested, this was within the range of estimates, 7% behind last year's pace
Soybeans: 22% harvested; this is a faster pace than expectations, but 9% behind last year's pace.
A Look at the Outside Markets
The dollar is continuing to retreat, trading back to one of the September 23rd breakout point near 111. If the dollar continues to retreat it may offer some support to commodities. Oil is approaching yesterday's high and equity markets are continuing to rally, trading roughly 2% higher this morning.
Corn
December corn futures were able to gain some ground to start the week, but the overall performance was still less than impressive considering the risk-on trade in other markets. The market is right in our pivot pocket this morning, we've outlined that as 678-682. A close above here could spark a move back towards resistance, we see that coming in from 698-700. We have been in and remain in the camp that believes there will be short term trading opportunities for participants on both sides. A break above resistance or below support would likely change that theses as we could see the market take more of a direction, other than sideways.
Bias: Neutral/Bearish
Previous Session Bias: Neutral/Bearish
Resistance: 698-700**, 725 3/4-728 1/4****
Pivot: 678-682
Support: 665-668 1/2***, 647 1/4-650 1/4****
Soybeans
Soybean futures were soooo close to the July 26th gap, we would have thought that they would just fill it and get it over with. The market is was able to defend the August 3rd and 4th lows which has offered some relief in the early morning trade. There is a Bullish seasonal that starts today, but we are hesitant to jump on board just yet. Our hesitancy comes from the delay in planting pushing back harvest, which may bump back the seasonals just a hair.
Wheat futures continue to be very choppy, but the overall chart structure remains constructive. Resistance from 940-950 is the pocket the Bulls need to get out above. A failure to do so could drop prices back to trendline support,
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.
“If we step back and look at what that means for farmland, we're taking our energy production system from highly centralized production facilities and we have to distribute it,” says David Muth.
Wheat continues to rally while row crops ease, all watching weather says Allison Thompson of The Money Farm. Cattle build on Thursday's reversal on better cash news.
The European Commission cut its forecast for the 2024 European Union wheat crop to a four-year low amid a projected bigger decline in planted area than previously expected.
Grain and livestock close mixed Thursday. Alan Brugler, Brugler Marketing says wheat rallied for a 6th day pulling along corn and may still have some upside. Cattle recover with the help of better cash news.
