Corn
Technicals (May)
May corn futures continued to breakdown in yesterday’s trade after failing against resistance last week, putting prices nearly 20 cents off last week’s high and now about 20 cents off the contract low that was posted on February 26th. Today’s report could have some big implications on prices through the spring, so manage your risk accordingly. On top of that, the markets are closed tomorrow which makes today the last trading day of the month and quarter, which could also play a role in price action. At the very least, the Bulls will want to see a close back above our pivot pocket from 431 1/2-435.
Bias: Neutral
Resistance: 441 3/4-444 1/2, 447 1/2-450*
Pivot: 431 1/2-435
Support: 421-422***
Fundamental Notes
- The range of intended corn acres comes in from 90.0-93.472 million acres, with the average estimate being near 91.8 million acres.
- Quarterly stocks estimates range from 8.129-8.568 billion bushels with the average estimate being 8.427. This would be 14% higher year over year and a 5-year high for this time of year.
- Markets will be closed on Friday in observance of Good Friday.
Fund Positioning
- Friday’s Commitment of Traders report showed that Funds were net buyers of roughly 13k futures/options contracts, the bulk of that being short covering. That trims their net short position to 242,988 contracts. Broken down that is 171,123 longs VS 414,111 shorts.
Seasonal Trends
(Past performance is not necessarily indicative of future results)
- Below is a look at price averages for December corn, using the 5, 10, 15, 20, and 30 year averages. Though we believe we can see prices firm from these levels, we would urge Producers to temper the expectations, given the current balance sheet.
Continue Reading the full report at https://bluelinefutures.com/2024/03/28/traders-await-new-news-from-todays-all-important-usda-report/
Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. 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.
Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.
With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
