Corn Futures (December)
Fundamentals: December corn futures finished Friday's session on softer ground, spilling over into early morning weakness to start the new month. We are taking the light volume overnight/early morning trade with a grain of salt, as usual. Weather continues to be watched closely, bulls want to see cooler temps stick around longer. Friday's Commitment of Traders report showed funds sold 37,696 contracts through August 27th, expanding their short position to 94,137 contracts.
Technicals: The market remains trapped in a sideways range as participants wait for another breakdown or a breakout. Significant support remains intact from 363 3/4-369, but each time it is tested it gets weaker. If the bulls are unable to defend this pocket with conviction, we would not be surprised to see the selling accelerate. The big resistance hurdle comes in from 377-381, the bears have the advantage until we see consecutive closes above here.
Previous Session Bias: Bullish
Resistance: 381**, 392 ¾***, 405-407**
Support: 363 ¾-369***, 338 ¾-343**
Soybeans Futures (November)
Fundamentals: November soybean futures tried to rally on Friday but failed to hold those gains into the long holiday weekend; that afternoon weakness has spilled over into the early morning trade. Weather continues to be a lingering concern for market participants, but prices aren't reflecting much panic. Friday's Commitment of Traders report showed funds net short 76,047 contracts, an increase of 3,615.
Technicals: Friday's reversal ahead of a long weekend is not what the bull-camp wanted to see. In a true "weather market", prices often hold firm into a long weekend due to uncertainty, that was not the case on Friday which keeps the bear camp in control to start the month of September.
Previous Session Bias: Bullish/Neutral
Resistance: 880-882**, 891 ½-896 ¾***, 921-924***
Support: 852 ½-856 ½****, 839 ¾-843 ¾**, 815 ½****
Wheat Futures (September)
Fundamentals: Chicago wheat continues to be the anchor for the bear camp, keeping our bias at Neutral/Bearish. As stated several times over the last few months, we believe that weakness in Chicago wheat will persist and if you want to be long wheat, consider the KC contract.
Technicals: Chicago wheat futures are breaking below the 460 market, keeping the bears in total control. Lower highs and lower lows is the trend and there's not a lot of technical support until we get closer to the contract lows at 442 1/4.
Previous Session Bias: Neutral/Bearish
Resistance: 483 ½**, 493-500****, 525 ¾-531 ½****
Support: 442-446**, 427 ¼****