Farmers and Producers Look To Reduce Risk Ahead Of This Morning's WASDE Report

Soybeans caught a bid yesterday on the back of news that China would be open to a partial deal
Grain futures market update

Grain futures market update

Corn Futures (December)

 

Fundamentals: Corn futures gave back some ground yesterday as producers looked to reduce risk ahead of this morning's WASDE report. 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. Estimates for export sales come in from 500,000-800,000 metric tons. Once we get past the report, all eyes will turn back to weather/frost concerns.

Technicals: The market tried but failed near 398-401, which is psychologically significant but also represents the 38.2 retracement and the 200-day moving average. If we get a friendly/neutral report from the USDA today, we could see that taken out and the market run towards our more significant pocket from ... Please sign up for a Free Trial at Blue Line Futures to have our entire report including technical outlook, actionable bias and levels emailed to you each day.

 

Soybeans (November)

Fundamentals: Soybeans caught a bid early yesterday morning on the back of news that China would be open to a partial deal, for those paying attention at home, this wasn’t really new news. Later in the evening, there were reports that trade talks in Washington had broken down and Chinese delegates would be leaving a day early. This jawboning and smoke blowing has been a common theme and will likely continue until we get closer to the election. Expectations for export sales come in from 1,300,000-1,800,000 metric tons. Traders are anxiously awaiting this morning’s USDA report, out at 11 am CST. 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. Minutes after the report, attention will shift back to weather as concerns of frost/snow loom.

 

Chicago Wheat (December)

Fundamentals: December Chicago wheat finished the day near unchanged as the market struggled to find new news to break it out above technical resistance. Estimates for export sales range from 300,000-600,000 metric tons. All eyes will be on this morning’s USDA report, most of that attention on corn and beans which could have a spillover effect on wheat.

 

Cotton (December)

Fundamentals: Due to popular demand, we bring you Cotton! Cotton was able to get a bid yesterday on the back of rumors that China was open to a partial trade deal, some of that optimism dissipated by the early evening as it was reported that Chinese delegates would be leaving a day early. Expectations for U.S. production range from 21.30-22.00 million. Ending stock estimates range from 6.65-7.4 million. Money flow has been constructive over the last month so the bull camp has a slight edge, today’s report will set the tone going forward.

Technicals: The bull camp is on the verge of forming a trend of higher lows and higher highs, today’s USDA report could be the catalyst they need to reverse the 6-month bearish trend. The first resistance comes in from 62.91-93.39. If the bulls can achieve a conviction close above here, we could see a swift move back towards ... Please sign up for a Free Trial at Blue Line Futures to have our entire report including technical outlook, actionable bias and levels emailed to you each day.

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