Technical Selling Hits Chicago Wheat Futures

Cold-weather looks to persist through the weekend for some areas
Grain traders fundamental focus is largely on the harvest
Export Sales mixed for the week
Grain futures market update

Grain futures market update

Corn Futures (December)

Fundamentals: December corn futures managed to rally off the lows yesterday as funds looked to cover shorts ahead of the weekend and month-end. Export sales yesterday morning came in at 549,100 metric tons, up 29% from the 4-week average. Though this was a step in the right direction, the bull camp needs to see higher numbers become a lasting trend. Winter weather continues to be a concern, we are a little surprised we aren’t seeing more of a premium in the market with funds holding a good-sized net short position.

Technicals: Despite being softer yesterday morning, we moved our bias to outright bullish, on positive chart developments. Yesterday’s early morning weakness was followed up by a slow grind higher throughout the day, making for a very constructive session. The market is having trouble finding new buyers in our first resistance pocket, we have defined that as 390-392 ¾. A close above here....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. 

 

Soybeans (January)

Fundamentals: Soybeans were under pressure to start yesterday’s session but managed to find their footing into the afternoon. That momentum has spilled over into a slightly firm overnight and early morning trade. Export sales yesterday morning came in at 943,600 metric tons, down 39% from the 4-week average. Though down from recent weeks, it was still near the top end of estimates. Winter weather moving through the Midwest is a huge concern for those who have a harvest to finish. Trade talks and optimistic headlines haven’t amounted to anything over the last year, but the lingering possibility, though a small percentage, is helping to offer some support to the market. We continue to believe that we won’t get anything done until closer to the U.S. election.

Technicals: In yesterday morning’s report we moved our bias to outright bullish as prices fell into our support pocket from 921-928 ½. This pocket represents a key retracement, the 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. 

 

Chicago Wheat (December)

Fundamentals: Chicago wheat took a hard hit yesterday, much of what was likely technical selling. Export sales yesterday morning came in at 493,800 metric tons, up 31% from the 4-week average. Broad-based money flow in grains set the tone for wheat, a softer morning followed by a rebound into the afternoon.

Technicals: We have had 4-star support listed as 500-506 ¼ for the last few weeks, nothing that “If you’re bullish Chicago wheat, this is a pocket where you might find value, on the first test.”. The market tested and held exactly how the bulls want to see it, a springboard higher. The big hurdle for the bull camp comes in at 515-518½. If the bulls fail to reclaim ground above here, we could start to see a bearish head and shoulders pattern...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. 

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