Corn Futures Bulls Want To Defend Prices Going Into Weekend

Emphasis on money-flow and technicals
Wheat futures broke out above technical resistance
Monitoring harvest progress
Grain futures market update

Grain futures market update

Corn Futures (December)

Fundamentals: The market chopped around yesterday thanks to a slow news day. The weekly EIA ethanol report showed production increase 8,000 barrels per day to 971,000 bpd. Export sales this morning came in at 368,600 metric tons. We remain optimistic about prices but really need to see the demand side of the picture brighten up. As harvest starts to ramp up we will start to hear more about production, early on it seems there’s a trend of disappointment (in yields).

Technicals: The market is treading water in our pivot pocket from 390-392 ¾, the bulls want to defend this going into the weekend. A failure could open the door for a leg lower, retesting the bottom end of the recent range from... 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: The market tried to run higher yesterday but fizzled out into the close. The lack of bullish headlines and harvest has kept a lid on things through the week. Export sales this morning came in at 1,700,000 metric tons. We remain optimistic about prices over the intermediate-term as money-flow and technicals remain positive, potentially telling the story of what’s to come (price precedes news).

Technicals: The market failed to break out of our pivot pocket from 936 ½-938 ¾, this will be the spot to watch again today. If the bulls can achieve consecutive closes above here we would expect to see another leg lower. A continuing failure could take us back to the low end of the recent range, the 920 area.

Bias: Bullish/Neutral

 

Chicago Wheat (December)

Fundamentals: Chicago wheat futures broke out above technical resistance which sparked a round of short-covering. The softening dollar has been helping the grain sector, wheat is one that generally sees a higher correlation to the dollar. We have been optimistic about wheat (more so on the KC) but we are getting to a point where we may take a breather. Export sales this morning came in at 395,100 metric tons.

Technicals: The technicals have been extremely constructive over the last month and that remains the case this morning. With that said, we are nearing overbought and approaching our 4-star resistance pocket from.....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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