Corn Futures (December)
Fundamentals: December corn futures managed to trade to their highest level in over a week as wintery weather moves through the Midwest and spurs some short covering from the funds. That cold-weather looks to persist through the weekend for some areas, possibly ending the growing season for late-planted corn. Yesterday’s weekly ethanol report showed production increased 8,000 barrels per day to 1,004,000 bpd. Export sales this morning came in at 549,100 metric tons, up 29% from the 4-week average. The bulls desperately need to see the demand pick up in order to stage a more meaningful rally.
Technicals: The market worked into our first resistance pocket yesterday and ran out of gas, we have had that defined as 390-392 ¾. The failure has led to a weaker overnight/early morning trade, but we remain optimistic and are taking the light volume trade with a grain of salt...Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each day.
Fundamentals: January soybean futures were a laggard yesterday as optimism around a phase-1 trade deal diminished after the Summit in Chile was canceled, due to protests in Santiago. With that said, was anyone really expecting anything substantial from a would-be “phase-1” deal? We continue to be very hesitant on trade optimism until we get closer to the election, nearly a year away. As I’m writing this, there are reports that Beijing could ax tariffs on U.S. farm products to boost exports. This is a recycled headline but should not be completely ignored. Export sales this morning came in at 943,600 metric tons, down 39% from the 4-week average.
Technicals: January soybeans tested our technical support pocket in the overnight trade, we have had that defined as 921-928 ½. We have noted that we believe this is a buying opportunity on the first test if you’re bullish. This pocket represents a key retracement, the 200-day moving average, and other previously important price points...Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each day.
Chicago Wheat (December)
Fundamentals: December wheat futures continue to trickle lower as market participants seem a little concerned that the recent rally may price the U.S. out of the market. With that said, exports were healthy this morning, coming in at 493,800 metric tons. This is up 31% from the 4-week average. The US Dollar is making a run back at the recent lows, a further breakdown here could help support prices.
Technicals: The market has officially moved into our 4-star support pocket, we have had that defined as 500-506 ¼. This pocket is psychologically significant, but it also contains the 100 and 200-day moving average... Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each day.