Unusually dry weather in the U.S. Corn Belt region and the upcoming USDA acreage report have added uncertainty to the grain market, with the corn and soybean volatility indexes rising to their highest level since last July. New crop weekly options and short dated options can be a great tool to help manage risk in this volatile environment. |
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Technicals (December)December corn futures have officially traded back near the scene of the crime, or the origination of the breakout point from just 2-weeks ago. All in all, it’s been an 80-cent round trip, filled with opportunities for both the Bulls and the Bears. The Pigs.....like usual got slaughtered. But all of that is behind us now and today is a new day, with new opportunities as we inch closer to the last trading day of the week, month, and quarter, which also brings a historically volatile USDA report. Good news for the Bulls, there is significant support within arm’s reach. 540-545 represents previous area of consolidation along with the 50-day moving average. Below that is 530-536 3/4 which represents the gap from June 12th.
Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish
Resistance: 575 1/2-583**** Pivot: 556-562 Support: 540 1/2-545***, 530-536 3/4****
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Soybeans |
Technicals (November)November soybean futures are continuing to slide lower in the early morning trade, inching closer to the scene of the crime (like corn) from June 15th. Despite prices being $1.05 off the highs from just last week, the RSI (relative strength index) is still at 52. In yesterday’s report we listed first support which is also a 4-star level from 1245-1250. This is still a realistic objective in the near term. A reversal and close back above our pivot pocket would probably neutralize the bearish setup into Friday’s report.
Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish
Resistance: 1335-1341***, 1364 3/4** Pivot: 1284-1294 Support: 1245-1250****, 1200** |
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