Corn Futures (December)
Fundamentals: December corn futures finished lower yesterday as longs continued to liquidate and shorts pounced. Export sales this morning came in at 363, 700 metric tons (old/new crop). There is not a lot of new news on the horizon so we will keep our ear to the ground on weather and crop development. Crop tours will start hitting the roads in the coming weeks, this will likely have some influence on price action.
Technicals: As mentioned in yesterday’s report, technicals have less significance in this environment, so take them with an extra grain of salt. The slow bleed lower does little to help the chart, typically you want to see a springboard or capitulation type of trade-off of very oversold levels. The lack of a “pop” indicates that there could be more of a drop. Contract lows are on our radar, which comes in at 363 ¾. A relief rally is likely, but it will likely be kept as just “relief” until we see consecutive closes above technical resistance, 392 ¾ is the line in the sand we are watching closely.
Previous Session Bias: Neutral
Resistance: 381**, 392 ¾***, 405-407**
Support: 363 ¾***
Soybeans Futures (November)
Fundamentals: Another day, another headline. We got word that China would like to meet the U.S. half-way on trade issues this morning, soybeans barely flinched; probably because the U.S. said they don’t want to meet half-way, yesterday. President Trump is likely holding this card until closer to the election. Export sales this morning came in at 707,500 metric tons (old/new crop).
Technicals: Not much has changed on the technical landscape over the last 24 hours. 875-895 is the short-term range, a break-out or break-down could lead to a bigger directional move. A break below the low end of the range could open the door for a run back into the low 860’s. Bears have a slight advantage with the trend of lower highs and lower lows still intact from the June highs near 950.
Previous Session Bias: Neutral
Resistance: 891 ½-896 ¾**, 900-904 ¼***, 921-924***
Support: 875**, 854 ½-860 ½****, 839 ¾-843 ¾**
Wheat Futures (September)
Fundamentals: December wheat futures finished yesterday’s session near unchanged. There hasn’t been a lot of new news since Monday’s USDA report. The near-term focus has been money flow and market sentiment. Export sales this morning came in at 474,500 metric tons (old/new crop).
Technicals: The market has staged a minor recovery from Monday’s blood bath but still remains bearish on the chart. Lower highs and lower lows have been the trend since the double top and head/shoulders pattern from the middle of June. The first resistance for today’s session comes in from 483 ½-486. A conviction close above here and we could see a run back towards $5.00. A break and close below support at 469 ½ opens the door for a potential whoosh lower. The next line in the sand comes in at 459 ½, below that is contract lows of 442 ¼.
Previous Session Bias: Neutral/Bearish
Resistance: 483 ½-486**, 501 ½-506 ¼****, 525 ¾-531 ½****
Support: 469 ½***, 442-446**, 427 ¼****