Soybean Futures Lead Grain Markets Higher On Friendly Quarterly Stocks Report

November soybeans led the day in gains on the back of a friendly report.
December corn futures took off yesterday following a bullish USDA report
Wheat futures rallied along with corn and beans, despite a pretty blah report
Grain futures market update

Grain futures market update

Corn Futures (December)

Fundamentals: December corn futures took off yesterday following a bullish USDA report. The USDA showed quarterly stocks at 2.114 billion bushels, right on the bottom end of estimates. Attention will now shift back to weather and reports of yields as harvest starts to ramp up in the coming weeks. Yesterday’s Crop Progress report showed good/excellent ratings at 57%, unchanged from last week. Harvest is said to be 11% complete, 8% behind the five-year average.

Technicals: The market shot out above our resistance pocket from 377-381, this will now become support for the remainder of the week. So long as the bulls continue to defend this pocket, they have the advantage. The gap from August 12th is just a stone’s throw away at 392 ¾, this would be a spot to consider reducing long exposure. If we were to get closer to $4.00, we would likely start to neutralize our outright Bullish bias.

Bias: Bullish

Previous Session Bias: Bullish

 

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Soybeans Futures (November)

Fundamentals: November soybeans led the day in gains on the back of a friendly report. Carryout came in at .913 billion bushels, well below the average estimate. This coupled with rumors of more purchases from China has sparked a nice rally to start the week. As with corn, attention will start to turn towards weather and harvest updates. Money flow remains constructive, keeping our bias at outright Bullish.

Technicals: The bull camp finally got the move they were looking for which opens the door for a run 912-915 ¼. ¼, this pocket represents the 200-day moving average and the 50% retracement, or the middle of the range from contract highs to contract lows. This would be a spot to consider reducing long exposure.

Bias: Bullish

Previous Session Bias: Bullish

Wheat Futures (December)

Fundamentals: Wheat futures rallied along with corn and beans, despite a pretty blah report. The average estimate was near 2.318 billion bushels, the report came in at 2.385 billion bushels. Crop Progress showed winter wheat is 39% planted, this is 3% ahead of the expected pace. As with the past several weeks, our attention is on money flow and technicals, both of which have been firm, keeping our bias on the bullish side.

Technicals: The market reached our 4-star resistance level, a good place to look at reducing long exposure. This is a full retracement of the August 12th meltdown, along with the 100-day moving average and the psychologically significant $5.00 handle. The 200-day moving average also comes in just above at 506 ½. We would not be surprised to see a round of profit-taking/long liquidation.

Bias: Neutral/Bullish

Previous Session Bias: Neutral/Bullish

 

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