Grain Traders Focus On Harvest, Money Flow, and Technicals

Soybean futures retreated yesterday on broad-based selling in grain markets
Focus will continue to be on money flow and technicals
Grain futures market update

Grain futures market update

Corn Futures (December)

Fundamentals: Corn futures saw another round of profit-taking yesterday, spilling into the overnight and early morning session. In yesterday’s report, we wrote: “We remain optimistic on prices but continue to feel a pullback/cleanse would be healthy for the market, especially during a week where there aren’t a lot of flashy headlines.”. The lack of headlines has us leaning on technicals for the remainder of the week.

Technicals: The market has pulled back into our pivot pocket of 390-392 ¾, this was previously resistance and now becomes support. If you had reduced at the end of last week or Monday morning, this would be the spot to consider getting that long exposure back on. If the bulls can not......... 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 retreated yesterday on the back of broad-based selling in grain markets and a poor crush report. Yesterday’s NOPA crush report came in at 152.566 million bushels, about 10 million bushels less than expectations. Like corn, we remain optimistic on prices but would welcome a deeper pullback in a week with little news scheduled.

Technicals: The market staged in inside day, trading within the previous day’s range and finishing near our pivot pocket from 936 ½-938 ¾. If the bulls cannot defend this pocket, we could see a run closer to 920, a spot that we would see value to the buy-side. Higher lows and higher highs have been the trend and we expect that continue over the intermediate-term.

 

Chicago Wheat (December)

Fundamentals: Chicago wheat peeled off lower yesterday as broad-based selling in grains was unavoidable. If corn can stabilize, we would not be surprised to see wheat find its footing too. With little new news on the wire, our focus will continue to be on money flow and technicals.

Technicals: The market pulled back into our 4-star support pocket, previously resistance. We have had this listed as 500-506 ¼. If you’re bullish the market, this is the area to consider adding long exposure. If you’re bearish the market.... 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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