Corn Futures (December)
Fundamentals: December corn futures finished yesterday’s session down 2 ¼ cents, trading in a range of 3 ½ cents. Daily ranges have started to narrow as market participants search for new news. Market participants will continue to keep a close eye on weather as cooler temps work through the Midwest. The risk of an early frost still lingers in the back of our minds, but the market doesn’t seem too concerned. We will be watching today’s weekly EIA ethanol report, the trend has been lower for over a month which has been an added headwind to the corn market. Money flow and technicals have been weak which keeps the bears in the driver’s seat.
Technicals: Tighter daily ranges may come across as boring, but it may present more short-term trading opportunities. As far as support and resistance levels go, not much has changed in the last 24 hours. Technical support is being tested in the early morning trade, that comes in from 363 ¾-369. A break and close below here takes us into uncharted territory, leading us to use the less reliable continuous chart for the next support levels. On the resistance side of things, there’s not a lot until 381.
Previous Session Bias: Neutral/Bullish
Resistance: 381**, 392 ¾***, 405-407**
Support: 363 ¾-369***, 338 ¾-343**
Soybeans Futures (November)
Fundamentals: November soybean futures finished yesterday’s session down 6 ½ cents, trading in a range of 10 cents. All in all, this week’s trade has been consolidation as market participants wait for new news to hit the wires. On the trade front, we aren’t expecting much more than the continuous jawboning back and forth that we have seen over the last year. Cooler weather and the potential for an early frost are a concern and probably holding some premium in the market right now, though it may not appear so.
Technicals: Yesterday’s session was an inside day, trading within the previous day’s range. Significant support continues to hold, we have had that defined as 854 ½-860 ½. The bull camp really wants to see a spring-board reaction off support, the lack of one is a bit of a caution flag here in the near term. If the bull camp cannot defend support through the remainder of the week, we would not count a retest of contract lows out, over the next several weeks.
Previous Session Bias: Neutral
Resistance: 891 ½-896 ¾**, 921-924***
Support: 854 ½-860 ½****, 839 ¾-843 ¾**, 815 ½****
Wheat Futures (September)
Fundamentals: December wheat finished yesterday’s session on higher ground but failed to take out the previous day’s highs. The lack of new news may lead to near term consolidation. Ideas of slower global growth and excess supply have been a headwind for many commodities including wheat.
Technicals: From the technical perspective, the bears remain in control of the market and there’s no denying that. If you think otherwise, you’re probably a perma-bull, just flip the chart upside down if you want to see a clear uptrend. Technical support and resistance levels remain intact from the previous session. On the support side of things, the bulls need to defend 461 ¾-466. A break and close below could take us to contract lows, 442 ¼.
Previous Session Bias: Neutral
Resistance: 483 ½**, 493-500****, 525 ¾-531 ½****
Support: 461 ¾-466***, 442-446**, 427 ¼****