Corn and Soybean Futures Continue Rally On The Back Of Weather Concerns and Short Covering

December corn futures printed their highest price since August 12th
November soybean futures have continued to rally into the early morning trade
Wheat futures took off yesterday, in tandem with the broader grain complex
Grain futures market update

Grain futures market update

Corn Futures (December)

Fundamentals: December corn futures printed their highest price since August 12th (USDA report day) as funds continued to cover short positions ahead of tomorrow’s WASDE report and the looming freeze/snowstorm. Corn production estimates range from 13.446-13.833 billion bushels. Harvested Acres estimates come in from 80.80-82.02 million acres. Yield estimates range from 166.0-168.7 bushels per acre. If we get a neutral/friendly report to go on top of the winter weather, we could see the market continue to rally into the weekend. Having an exit strategy is important, if you’re a shorter-term trader, consider targeting early next week as a point to capitalize.

Technicals: Finally, yesterday we got something to get excited about. The market moved out above resistance and is now approaching a massive level at .... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook, actionable bias and proprietary levels emailed out each morning. 

 

Soybeans (November)

Fundamentals: November soybean futures have continued to rally into the early morning trade on the back of weather concerns and word that China will be buying more U.S. agricultural products. Tomorrow’s USDA report will be out at 11 am, the range of estimates for production is 3.525-3.660 billion bushels. The range of estimates for harvested acres is 74.8-75.9 million acres. The range of estimates for yield is 46.8-48.2 bushels per acre. If it wasn’t for tomorrow’s USDA report our bias would be outright Bullish but remain Bullish/Neutral. Meaning we are bullish but wouldn’t be buying aggressively.

Technicals: The market broke out above resistance and looks primed for a retest of the June highs at 948. Previous resistance now becomes support, the bulls will want to defend ...  

 

Chicago Wheat (December)

Fundamentals: Chicago wheat futures took off yesterday, in tandem with the broader grain complex. Short-covering ahead of tomorrow’s USDA report coupled with weather concerns in the northern grain belt helped kick off the buying spree in grains yesterday.

Technicals: Chicago made a run at our resistance pocket from 500-506 ¼, this pocket represents the psychologically significant $5.00 handle, the breakdown point from the August 12th USDA report, along with the 100 and 200 days moving average. If the bulls can achieve consecutive closes above here, perhaps we see the market continue to run towards the next resistance at ...  Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook, actionable bias and proprietary levels emailed out each morning.

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