Grain Markets are Lower This Morning. Why?

Fundamental Spotlight

Weekly Export Inspections

Yesterday's weekly export inspections for corn came in at 689,052 metric tons, below the 821,533 we saw in the previous week. Export inspections for soybeans cam ein at 436,851 metric tons, below the 686,827 we saw in the previous week.

Crop Progress

Yesterday's crop progress report showed corn good/excellent ratings at 54%, a decline of 1% from last week, but in line with estimates.

Soybean good/excellent ratings came in at 57%, unchanged from last week, analysts were expecting to see a drop of 1%.

Export Sales

Leave it to the government to try and fix something that isn't broken. The failed rollout of the weekly export sales data last week prompted the USDA to issue a statement yesterday saying that "weekly export sales data unavailable until further notice".

Technical Snapshot

Corn

Sign Up for Market Research - Blue Line Futures

December corn futures traded into and slightly above 4-star resistance yesterday, we defined that resistance pocket as 677-682. This pocket represents previously important price points, including the breakout point from March 31st and the breakdown point from June 23rd. This pocket also represents the 100-day moving average. The RSI got up to 68.32 yesterday, which isn't "overboguht" but it is at the higher end of the range. As mentioned in yesterday's report, we would not be surprised to see the market stall out against this pocket after such a stout rally.

Bias: Bearish/Neutral

Previous Session Bias: Neutral/Bearish

Resistance: 682-685****, 700**, 725 3/4-728 1/4****

Pivot: 650

Support: 624-631***, 606 3/4**, 584 1/4-587 1/2****

Soybeans

Sign Up for Market Research - Blue Line Futures

November soybean futures failed to get out above the 100-day moving average with any sort of conviction for five consecutive sessions, that may have helped spark some selling yesterday, which has bled into the overnight and early morning session as the market retreats closer to the 50 and 200 day moving average, 1404 1/4-1407. Just below this is they psychologically significant $14.00 handle. A failure here opens the door for the potential of another 25-cent drop, which were the lows from the middle of August.

Bias: Bearish/Neutral

Previous Session Bias: Neutral/Bearish

Resistance: 1459 1/4-1467***, 1481-1489***, 1500-1507 ¾****

Pivot: 1430-1440

Support: 1400-1407****, 1376-1379**

Wheat

Sign Up for Market Research - Blue Line Futures

December wheat futures made a move back into our resistance pocket, 839-849 (849 just happened to be yesterday's high). A conviction close above this pocket could keep the rally alive, the next pocket is 859 1/4-863 3/4. Out above there, there isn't much resistance until you get to the 900-910.

Bias: Neutral/Bullish

Previous Session Bias: Neutral/Bullish

Resistance:839-849**, 859 1/4-863 3/4***, 900-910****

Pivot: 800

Support: 770-775**, 743-746***

Don't have a trading account with Blue Line Futures?

Open an account from the U.S

Open an account from the U.K and Europe

Open an account from Canada

Open an account from anywhere not mentioned

If you have any questions about markets, trading, or opening an account please let us know!

You can email us at info@BlueLineFutures.com or call 312-278-0500

BlueLineFutures.com

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.