Corn
Technicals (July)
July corn futures were ablet to stage an impressive rally last week, relative to the previous week’s price action. The upside momentum is continuing to start the shortened week with July futures testing resistance overnight, which we have had outlined as 471-474 3/4 (overnight high so far is 471). If the Bulls can chew through this resistance pocket, we could see the market extend this rally into the mid 480’s. There’s been a lot of conversation this year around short covering, which has been a tailwind to the market since the February lows. The most recent Commitment of Traders report showed funds holding a net short position of 121,162 futures and options contracts, that’s up from 71,171 in the previous report (so funds were net sellers of roughly 50k contracts from May 8th-May 14th).
- Bias: Bullish/Neutral
- Resistance: 471-474 3/4****, 483 1/2-486***
- Pivot: 460 1/4-463 1/2
- Support: 454 1/4-456 1/2***, 448-451**
Soybeans
Technicals (July)
July soybean futures gaped higher to start the week, trading into our resistance pocket from 1252-1259, which has so far held. Though the early strength has dissipated, the chart still looks fairly constructive. A break and close back below our pivot pocket from 1232 1/4-1236 3/4 would neutralize that bias. If the Bulls can chew through and close above resistance, we could see a swift move higher with little significant resistance until closer to the psychologically significant $13 handle, with the gap from January 2nd coming in just above that at 1311 3/4. Friday’s Commitment of Traders report showed funds net short 26,426 futures and options contracts, the smallest net short since January 2nd.
- Bias: Bullish/Neutral
- Resistance: 1252-1259***, 1280**
- Pivot: 1232 1/4-1236 3/4
- Support: 1220-1225***, 1199 1/2-1204****
Wheat
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