Is the top in for corn and beans?
Oliver Sloup breaks down the market action on the back of today's WASDE report. With rising food inflation across the board that was confirmed by this morning's Consumer Price Index, our trade desk is here to help!
Corn (July)
Fundamentals: Yesterday’s WASDE report was not enough to feed the Bull and has prompted not only long liquidation, but likely new shorts (back)into the market. 2020/2021 ending stocks came in at 1.257 billion bushels, near the middle of estimates. World ending stocks came in at 283.5 little changed from the previous report and above the average estimate. New crop carryout estimates for US and World were on the high end of estimates which put a lot of pressure on December futures. Traders are also expecting to see next month’s report show a jump in US acres. Not to mention that weather has been reasonable, outside of some isolated areas.
Technicals: July futures are nearly 35 cents off the contract highs, which looks like a blip on the chart. This should act as a caution flag for the bull camp, we can trade another 25+ cents lower and still hold trendline support, so managing your position and expectations are important. Our pivot pocket has been tested overnight and has so far held, that comes in from 698-701 ½. A break and close below here opens the door for a leg lower, with the next support pocket coming in near ..........Click this link to read the FULL report and receive our daily commentary
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Soybeans (July)
Fundamentals: July soybean futures made new contract highs before the report and held their own, post report. The USDA showed US ending stocks for old crop and new crop were little changed. World ending stocks for 2020/2021 were inline with estimates, but 2021/2022 came in above trade expectations.
Technicals: Soybeans are under pressure this morning but have not even given up all of yesterday’s gains. First technical support today comes in from 1615-1617 ¾. A break below here could take us back to the psychologically significant 1600 handle, which will be the bigger inflection point..........Click this link to read the FULL report and receive our daily commentary
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Chicago Wheat (July)
Technicals: Wheat futures were under pressure yesterday after failing against our pivot pocket for the second consecutive session. The market has now retreated near 3-star support, 711 ½-717. A break and close below there could take us considerably lower, so the Bulls MUST defend this pocket..........Click this link to read the FULL report and receive our daily commentary
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