-China has imposed undefined sanctions on House Speaker Pelosi. Beijing says it will cease cooperation on multiple issues in retaliation to Nancy Pelosi’s visit to Taiwan. Those issues include military drills in Taiwan and Climate change (which is laughable). The lingering concern would be the potential that this escalates to trade relations.
Ukraine Grain
-Three more ships carrying corn have left Ukranian ports. The ships are headed to Ireland, the United Kingdom, and Turkey. Much of the grain leaving will be used for feed.
Rumors
-There were rumors yesterday that China bought 2-3 cargos of beans from the U.S. and up to 6 cargos from Brazil, for September.
Outside Markets
-Crude oil made 5-month lows yesterday, despite a sharply weaker U.S. Dollar. The U.S. Dollar is at a critical technical juncture, 105-106. This represents trendline support from the February lows and previous resistance in May and June, and the eventual breakout point in July.
Continuous chart of U.S. Dollar Futures
Weather Outlook
Technical Landscape
Corn
September Futures: Corn futures have made it to the Bulls first objective, 6.00. If this area can continue to be defended, we could see the market continue back to the top end of the recent range and the 200-day moving average 628-632. On the flipside, a failure could take us back to our 4-star support pocket which was tested and held this week, 580 3/4-586 1/4. Ahead of the weekend and in the middle of the risk range, we are moving our bias to outright Neutral.
Below: Daily Chart of September Corn Futures. Click to enlarge.
Soybeans
September Futures: Soybean futures got shot out of a cannon yesterday, which would typically be viewed as friendly, but we've seen such wide-ranging trades on both sides over the last week that it makes one temper the expectations of follow-through. The market moved out above our pivot pocket yesterday, 1444 1/2-1455. If the Bulls can defend this pocket we could see an extension to the recent highs, which is also near the psychologically significant $15.00 level. Coincidently, the 100-day moving average is also nearby, 1398 1/2. As far as our bias goes, yesterday's summary sums it up yet again; "Our bias remains Neutral as we could really see this market going either way."
Below: Daily Chart of September Soybean Futures. Click to enlarge.
Wheat
September Futures: We hate to sound like a broken record, but absolutely nothing has changed on the technical landscape, so we are basically copying and pasting what we wrote yesterday. All in all, September wheat futures have been mostly rangebound recently, call it 760 to 840. From a trading point of view, there are good risk/reward setups against those levels. A breakdown or breakout is where you would need to be careful of, as it could spark a bigger and longer-term directional move. In yesterday's report we moved our bias into Bullish territory since we were at the bottom end of the risk range. The market moved closer to the midpoint of the risk range which has us moving our bias back to Neutral.
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.
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