Grain Traders Attention Back to Weather, Crop Development, Crop Tours

Crop tours will start hitting the roads in the coming weeks
Corn futures support at 3.63
Soybean futures support 8.54-8.60
Grain futures market update

Grain futures market update

Corn Futures (December)

Fundamentals: December corn futures finished yesterday’s session little changed, trading in a relatively narrow range. Export sales came in at 363,700 metric tons (old/new crop). Attention has turned back to weather and crop development as crop tours start to hit the road.

Technicals: Yesterday’s tight trading range leaves the technical landscape little changed. 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.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 381**, 392 ¾***, 405-407**

Support: 363 ¾***

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Soybeans Futures (November)

Fundamentals: November soybean futures traded lower yesterday on the lack of new bullish headlines. We have seen recycled headlines (positive trade headlines) thrown at the market, with little response. We don’t expect anything substantive from trade talks until closer to the U.S. election, there’s no need to burn the wild card this early in the game. Export sales yesterday came in at 707,500 metric tons (old/new crop).

Technicals: The market broke below the low end of the recent range, defined in yesterday’s report as 875. This now becomes resistance on a closing basis, a close below could open the door for a run towards 854 ½-860 ½. This pocket represents a key Fibonacci retracement and several previously important price points. The trend of lower highs was marked earlier in the week, potentially taking us to lower lows next.

Bias: Neutral/Bearish

Previous Session Bias: Neutral

Resistance: 891 ½-896 ¾**, 900-904 ¼***, 921-924***

Pivot: 875

Support: 854 ½-860 ½****, 839 ¾-843 ¾**, 815 ½****

Wheat Futures (September)

Fundamentals: December wheat futures gave back the gains from the previous two sessions as concerns over supply/demand still linger. Our bias remains Neutral/Bearish. Export sales yesterday morning came in at 474,500 metric tons (old/new crop).

Technicals: The technical setup still looks weak, 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.

Bias: Neutral/Bearish

Previous Session Bias: Neutral/Bearish

Resistance: 483 ½-486**, 501 ½-506 ¼****, 525 ¾-531 ½****

Support: 469 ½***, 442-446**, 427 ¼****

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