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.
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.